IN FOCUS6-8 min read

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

Index concentration and future returns, equities vs bonds, improving profitability, and which stock markets look cheap?

13/11/2023
Photo of San Francisco bay

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

Click here to download your November copy

Summary:

  • The Super-7 continue to dominate. They are up over 50% this year, the rest of the world is flat. They make up more of global portfolios than Japan, UK, China and France combined (slides 5-6)
  • New research, to be published soon, shows that 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 7)
  • The expected reward for investing in US equities vs bonds continues to fall (slide 8)
  • Not all equities are expensive: small caps are cheap in absolute terms and vs large caps (slide 9)
  • Profit margins are starting to rebound in several markets (slide 19)
  • Earnings expectations for growth companies have been on the rise vs value companies, helping to fuel the growth rally this year (slide 31)
equity-lens-nov23-chart

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

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