Schroders Equity Lens September 2023: 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 monthly publication – the Schroders Equity Lens, a compilation of key trends in global equities illustrated through thought-provoking charts.

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).