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Schroders Equity Lens August 2025: your go-to guide to global equity markets
Demand for US equities soars on the back of strong fundamentals
Čítať celú správuSchroders Equity Lens August 2025
61 strany
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The August 2025 edition of the Schroders Equity Lens is now available: Schroders Equity Lens
Summary:
Main take-away: US exceptionalism continues despite policy/trade uncertainty
- Despite posturing, there is no evidence of a rotation away from US equities by international investors. Following cooler demand earlier this year, net buying rocketed in May (official data is only available with a lag) (slide 6).
- Across March-May, Japanese and Korean investors bought US equities at their fastest pace for years (slide 7).
- Investors in most major regions are now net buyers of US equities this year. Chinese and Canadian investors are exceptions (slide 8).
- Looking at flows from US investors, May was the second highest ever month for their net purchases of overseas equities, following heavy net-selling in April. This still fell well short of demand from overseas investors for US equities (slides 9-10)
- Perhaps in response to cheap valuations, demand from US investors for UK equities has far outstripped their appetite for other markets; Europe is unloved in the US, despite performing strongly this year in USD terms (slides 11, 15, 19-20).
- Enthusiasm for US equities has been supported by much stronger revenue and earnings growth expectations, positive earnings revisions, and high and rising profit margins (in absolute terms and vs other developed markets) (slides 12-14, 23).
- Investors are proving happy to buy those companies and markets which are delivering growth, even at historically high valuations.
- US equities have surged higher, matching European equities in local currency terms this year; a weaker dollar means Europe is still well ahead in common currency terms (slide 15)
- The US EPS growth advantage is being driven by the mega caps: the median US company has the same 12-month EPS growth forecast as the median European and Japanese company (slide 13)
- The Magnificent-7 have been closing the 2025 performance gap on the rest of the market – taking global index concentration towards new highs (slides 16-17)
Čítať celú správuSchroders Equity Lens August 2025
61 strany
Profily autorov
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