May’s publication summarizes two articles about European equity valuations. The first considers the changing political environment and whether this is baked in to equity prices. The second discusses various valuation metrics and why some might be less relevant in today’s challenging environment.

• “The New Eurozone Political Geometry: What Economic and Market Implications?” by Tina Fordham, Willem Buiter, and Jonathan Stubbs, Citigroup, May 14, 2012
• “European Strategy: From Despair to Where—The Long-Term Outlook for EPS Growth and Equity Valuation” by Graham Secker, et al., Morgan Stanley, May 8, 2012