QEP Global Equities - Investment Update
David Philpotts, Head of Research for the QEP Global Equities Team, presents the team's thinking on the risks and opportunities in global equities today.
Global equities cruised past their pre-financial crisis highs earlier this year, seemingly oblivious to mounting valuation hurdles and concerns about the narrowness of market performance. The last five or so years have hugely favoured Momentum, Growth and Macro-orientated investors, while Value approaches have struggled against this backdrop. Volatility has returned to some extent in recent months due to mounting concerns about a slowing Chinese economy and the pace of US policy tightening whilst emerging markets, which appear to lie at the very epicentre of the storm, remain firmly in the dog house. Rising volatility and shifts in the interest rate cycle are usually tell-tales for a rotation in leadership and with many of the themes that have driven equities higher in recent years appearing extended, this obviously begs the question as to whether this time will be any different.
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