IN FOCUS6-8 min read

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

This month's Lens looks at stock market returns vs cash and bonds, the US stocks that are cheap, and our usual wrap-up of everything you need to know in equity markets.

07-12-2023
EN

Authors

Duncan Lamont, CFA
Head of Strategic Research
See all articles

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 July copy.

Summary:

  • The US tops the performance league table once again (in USD terms) with a 17% return for H1 2023, but that has been driven by only a few stocks. The “super-7” are up 61% while the rest of the US market is up only 5% (slide 7).
  • Japan has outperformed the US in local currency terms, with a 24% rise, but currency weakness means that drops to 13% in USD terms. Europe is also having a great 2023, up 16%. UK and emerging markets trail (slides 7 and 17).
  • The stock market has outperformed bonds, cash, and inflation in the long-run. Cash pretty much guarantees underperforming inflation in the long-run (slide 5).
  • But the expected margin of US large cap stock market outperformance vs bonds is below-average at present (slides 8-10). Better long-term opportunities lie elsewhere (slides 11-14 and 26-27).
  • Not all US equities are expensive: small caps are cheap vs large caps and on a stand-alone basis (slides 12-13).

Chart of the month:

EN

Click here for the July version of the Equity Lens.

Subscribe to our Insights

Visit our preference center, where you can choose which Schroders Insights you would like to receive

Important information

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.

Authors

Duncan Lamont, CFA
Head of Strategic Research
See all articles

Topics

Market views
EquityLens
Equities
Global
Duncan Lamont
Alpha Equity
Contact Schroders

Please consider a fund's investment objectives, risks, charges and expenses carefully before investing. The Schroder mutual funds (the “Funds”) are distributed by The Hartford Funds, a member of FINRA. To obtain product risk and other information on any Schroders Fund, please click the following link. Read the prospectus carefully before investing. To obtain any further information call your financial advisor or call The Hartford Funds at 1-800-456-7526 for Individual Investors.  The Hartford Funds is not an affiliate of Schroders plc.

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada.  Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada.  SFA markets certain investment vehicles for which other Schroders entities are investment advisers.

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

Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com

SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.

© Copyright 2023 Schroder Investment Management North America Inc.