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

Our latest analysis highlights the charts and data that matter to global equity investors.

06/02/2023
Equity lens photo

Authors

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

Click here to download your February copy. 

Summary

Markets have rallied hard in early 2023, on relief at China re-opening and on expectations that there will be a softer economic landing than previously feared in the developed world (slide 9)

Europe’s bias towards cyclical sectors helped propel it to a near 10% return in January. Emerging markets (EM) also performed well. The heavyweight markets of China , Korea, and Taiwan, which together make up 60% of the  MSCI EM index (slide 31), all returned around 12% (slide 11)

Small caps have also been outperforming large caps, another sign of renewed optimism about the economic outlook (slide 25)

But rising markets have taken the shine off valuations. Non-US markets are where cheaper valuations can be found (slide 6) and value companies still trade on a historically cheap valuation vs growth companies (slide 7). This is true even after a sharp reversal in favour of the value style last year.

Chart of the month:

Chart comparing value and growth

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

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

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