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Schroders Equity Lens May 2026: your go-to guide to global equity markets
Earnings are soaring, and Taiwan’s index weight overtakes China’s.
Ler o relatório completoSchroders Equity Lens May 2026
59 pages
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The May 2026 edition of the Schroders Equity Lens is now available: Schroders Equity Lens
Summary:
- Strong fundamentals are powering equities: markets are up but valuations are cheaper, thanks to earnings (slide 5)
- Strong earnings growth has also been the story behind equity returns over the past decade (slide 6)
- Earnings outlook (slides 7-9):
- EM leads the way for earnings growth but 2026 is forecast to be strong everywhere, continuing into 2027 in most markets
- IT sector earnings are forecast to soar this year, as are energy and materials companies
- Rapid growth forecast for IT in 2027, but energy to fall back. Diverging trends for EM/US/Japan vs Europe/UK in 2027
- While the overall picture is one of expensive valuations, EM/UK/European equities are on undemanding valuations relative to next 12-month’s earnings. Smaller companies are on depressed valuations vs larger ones (slide 26-29).
- Taiwan has just overtaken China as the biggest market in MSCI EM. Korea on the rise too (slide 10).
- These are highly concentrated markets. TSMC is 57% of MSCI Taiwan, Samsung + SK Hynix make up 54% of MSCI Korea. These companies are all correlated with the AI trade.
- Consider value equities as a hedge against AI risk, without sacrificing equity exposure (slides 11-12)
Chart of the month:
Ler o relatório completoSchroders Equity Lens May 2026
59 pages
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