European shares trading at decade-high multiples still offerrelatively good risk-reward considering record-low interestrates and stubbornly low inflation.
** Fund managers dismiss historical metrics in zero ratesera.
** Stoxx 600 in valuation no-man's land, multiplebang in-line with history. http://link.reuters.com/kyp49v
** Equity risk premiums suggest there is still juice left inthe rally: http://link.reuters.com/sep49v
** Drop in bond yields as economic growth projections getpulled back not incongruous with equities rising: Goldman
** Underperformance of cyclicals and rotation intodefensives already pricing in weaker growth.
** Large-caps such as Total and Vodafone offer shelter from potential upsets.
** "Fear" phase in Europe may be over, but "greed" phase nothere yet: PM at Cholet Dupont. (RM: vikram.subhedar.thomsonreuters.com@reuters.net)