IN FOCUS6-8 min read

Schroders Equity Lens January 2024: your go-to guide to global equity markets

Analysing the past decade’s performance – with an unexpected result. Plus the usual wrap up of charts and insights on equity markets.

11/01/2024
jan-22-equity-lens-prof
Read full reportSchroders Equity Lens January 2024
47 pages

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

Summary:

  • Japanese and European companies have grown earnings at a similar/faster rate than the US over the past decade. US market outperformance has been driven by rising valuations and a strong dollar (slide 5 and 6)

  • Global equities rallied 15% in the last two months of 2023, the tenth highest two-month return for MSCI World since 1969 (slide 7)

  • US retail investors started 2024 in bullish mood. But this can be a contrarian signal. Late December sentiment reached a level which has historically preceded poor returns (slides 8-9)

  • The Super-7 rose 76% in 2023, the rest of the world 16%, although more recent performance has favoured “the rest”. They now make up more of MSCI ACWI than Japan, UK, China and France combined (slide 10-11)

  • Deviating from the market has been a winning strategy when concentration has been high. The tables could be set to turn in favour of more actively managed strategies at last (slide 12)

  • Non-US markets and small caps (US and international) trade on cheaper valuations (slides 13, 25-26)

Click here to download your January copy

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Read full reportSchroders Equity Lens January 2024
47 pages

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

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