In focus

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 quarterly 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 slide 14).

Chinese equities have plummeted and have now returned 0% over the past 30 years (slide 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 slide 22).

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

Companies are increasingly turning their attention to the risk of a recession. This can be measured via analysis of company transcripts (see slide 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 slide 11).

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Schroders Equity Lens November 2022

42 pages | 1,497 kb

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This material has been issued by Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFSL 226473) (Schroders) for information purposes only. It is intended solely for professional investors and financial advisers and is not suitable for distribution to retail clients. The views and opinions contained herein are those of the authors as at the date of publication and are subject to change due to market and other conditions. Such views and opinions may not necessarily represent those expressed or reflected in other Schroders communications, strategies or funds. The information contained is general information only and does not take into account your objectives, financial situation or needs. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Schroders and its directors, employees, consultants or any company in the Schroders Group do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. You should note that past performance is not a reliable indicator of future performance. Schroders may record and monitor telephone calls for security, training and compliance purposes.