An analysis of global equities published last week by Barclays analysts Ian Scott, Dennis Jose, CFA, and Joao Toniato, Ph.D. says there is room for a further rise in 2014, and that there is “little evidence of QE-inspired excesses.”

Global stocks under-pinned by fundamentals

The Barclays analysts project global real GDP growth of 3.4% and global industrial production growth of 4.9% in 2014. The report says this acceleration in growth will seek to close a large output gap still in place due to slowing global output over the past three years.

This economic growth is likely to boost forward earnings by 11% in a situation where current valuations are at best lined up with long-term averages, making a strong case for global equities to appreciate further next year.

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