IN FOCUS6-8 min read

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

This month's edition looks at the credit rating profiles of different equity markets as well as the resurgence of Big Tech, alongside our usual wrap-up of everything you need to know in equity markets.

Photo of Milan business district skyline


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 May copy.


  • Major developed markets are having a strong year, powered by rising valuations amidst weak earnings (slide 11). European equities are up almost 17% in USD terms to end April. Emerging markets (EM) are lagging a long way behind in aggregate, but a number of EM markets have delivered much better performance (slide 12)
  • Different equity indices have different credit ratings splits. All are investment grade but the FTSE 100 is weaker than elsewhere (slide 5). This matters as lower rated companies tend to be more volatile (slide 6).
  • Big tech is in the driving seat once again. Seven US mega-cap companies have collectively returned 34% this year. The rest of the US market is up only 3% (slide 7)
  • Corporate profitability remains under pressure due to rising costs (slide 8). But upgrades to earnings have started outpacing downgrades in European equities (slide 18). Downgrades still dominate everywhere else
  • Japanese and EM equities remain the cheapest valued vs history. The US continues to be the most expensive (slide 19).

Chart of the month:

Chart showing the different credit profiles of major equity markets

Click here for the May version of the Equity Lens.

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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.


Duncan Lamont, CFA
Head of Strategic Research, Schroders


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