Schroders Equity Lens June 2024: your go-to guide to global equity markets
20% of global companies are forecast to generate 20%+ earnings growth over the next year, plus should you be worried about low market volatility?
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Summary:
Wall Street’s “fear gauge”, has fallen to a low level but investors don’t need to take fright: equities have historically done pretty well from this point (slides 5 and 6)
Roughly 1-in-5 companies in the US, Europe, and Japan are forecast to deliver 20%+ earnings growth in the next 12-months; 2-in-5 for emerging markets. Importantly, a sizable number in all markets are also forecast to suffer falling earnings (slides 7-9).
As well as strong aggregate earnings growth forecasts (slide 18), the earnings outlook has been strengthening at a broad-based level. The proportion of companies with very high growth forecasts has been rising relative to those whose profits are forecast to fall (slides 10-11).
High single digit/low double digit gains have given global stock market investors a strong start to 2024. EM is the laggard (slides 13-14).
Chart of the month:
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