Italy & Spain are trading at the richest relative valuations to Europe since before the 2008 financial crisis.
** Chart: link.reuters.com/huv48v
** For Spain, the market's P/E has spiked to the highest premium to Europe since its heyday in the late 90's.
** The valuation discount between Italy & Europe, in place for 8 years, has almost disappeared.
** As developed market equities appear to wobble these pricey markets look vulnerable.
** Certain consumer-focused & banking stocks are looking particularly expensive relative to European peers.
** Luxottica Group in Italy and Inditex Sa in Spain trade at double the European consumer discretionary sector's average valuation of 12.8 times forward earnings.
** Grifols in Spain trades at nearly a third above other European healthcare stocks within the MSCI Europe index.
** Banco Popular trades at a 75% premium to European financials while Italy's Intesa Sanpaolo & Unicredit each trade at a 35% premium.
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