IN FOCUS6-8 min read

Schroders Equity Lens September 2023: your go-to guide to global equity markets

This month's Lens looks at share buybacks, a historical perspective on index concentration, and our usual wrap-up of everything you need to know in equity markets.

07/09/2023
equity-wooden-blocks-945
Read full reportSchroders Equity Lens September 2023
45 pages

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

What’s been driving stock prices? Are they currently expensive or cheap? And which regions and sectors are poised to do well next?

These are some of the questions we aim to answer in our monthly publication – the Schroders Equity Lens, a compilation of key trends in global equities illustrated through thought-provoking charts.

Click here to download your September copy.

Summary:

  • Share buybacks have increased in popularity outside of the US, especially in the UK. A sign that executives believe their shares are undervalued? (slides 5 and 6)
  • It is not normal for the global stock market to be so concentrated in as few companies as it is today (slide 7). The Super-7 US stocks now make up more of MSCI ACWI than Japan, UK, China and France combined (slide 8).
  • The rest of the world has been left in their wake this year (slide 9).
  • The expected reward for investing in equities vs bonds continues to shrink (slide 10).
  • Up 19% year-to-date, the US stock market reigns supreme once again thanks to the Super-7. Europe and Japan are also delivering strong returns but pale in comparison (+15% and +14% in USD terms, respectively), (slide 12).
  • There are tentative signs that profit margins in many parts of the world may no longer be falling (slide 20).
Equity lens graph
Read full reportSchroders Equity Lens September 2023
45 pages

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

Topics

EquityLens
Equities
Market views
Alpha Equity
Global
Duncan Lamont

Schroder International Selection Fund is referred to as Schroder ISF throughout this website.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

Schroder Alternative Solutions is referred to as Schroder AS throughout this website.

Schroder Special Situations Fund is referred to as Schroder SSF throughout this website.

Schroder Investment Management (Europe) S.A. is subject to the UCITS law of 17 December 2020 and the AIFM law of 12 July 2013.