Schroders Equity Lens November 2022: your go-to guide to global equity markets

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 regular publication – the Schroders Equity Lens, a compilation of key trends in global equities illustrated through thought-provoking charts.

Click here to download your November copy.

Global equities rose in October. The MSCI World index gained 7.1%, but that still leaves it down 20.1% year-to-date (in US dollars). UK equities remain the top performing market this year.

US dollar strength has weighed on non-US equity returns when expressed in dollar terms - and boosted US equity returns when expressed in other currencies (see page 14).

Chinese equities have plummeted and have now returned 0% over the past 30 years (page 6)

More markets – notably emerging markets and Japan - are starting to look cheap relative to their own history. But they may not be cheap enough given the weak economic outlook. US valuations are still expensive (see page 22).

Small cap valuations are already pricing in a lot of bad news (page 9)

Companies are increasingly turning their attention to the risk of a recession. This can be measured via analysis of company transcripts (see page 7).

Our research shows that, to outperform in the long run, investors may have to stomach extended periods of underperformance along the way. 81% of companies that outperformed the US stock market in the last 10 years underperformed for at least five years (see page 11).