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.



Duncan Lamont, CFA
Head of Strategic Research

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.


  • 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:


Click here for the July version of the Equity Lens.


Duncan Lamont, CFA
Head of Strategic Research


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