Schroders Equity Lens May 2024: your go-to guide to global equity markets
Positive developments outside the US, and everything else you need to know about global equity markets this month.
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Summary:
Economic surprises are positive outside the US – the UK stands out – but have collapsed in the US (slide 5)
Whisper it, but might perennially cheap UK equities be having a moment? They’re ahead of the US in local currency terms this year (slide 6), and valuations are still cheap vs international peers (slides 21-22)
A stronger dollar has been drag on returns for all markets in USD terms, particular Japan (slide 14).
Analysts are bullish on emerging market earnings. Consensus expectations are for are 20% growth this year and 15% next, in USD terms (slide 18)
Share buyback activity continues to rise outside of the US, a potential tailwind for stocks (slide 7 and read more)
The Magnificent-7 are up 104% since start of 2023, the rest of the world 23%. But performance divergence among them is growing (slides 8-10)
Deviating from the market has been a winning strategy when concentration has been high (slide 11 and read more)
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