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Schroders Equity Lens March 2025: your go-to guide to global equity markets
International stocks to the fore, and how exposed are equity markets to tariffs.
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The March 2025 edition of the Schroders Equity Lens is now available: Schroders Equity Lens
Summary:
- Cheaper valuations have favoured non-US markets for years (slide 25). But, in recent months, momentum has also turned in favour of them (slide 5).
- Recent declines mean the Magnificent 7 have collectively returned -1% since the middle of 2024. The rest of the global market is up 10% over the same period (slide 6).
- 85% of countries in MSCI ACWI have outperformed the US over past three months (slide 7). But global portfolios remain very US-heavy (slides 40-42)
- Earnings growth outside the US has been better vs US companies ex-Mag 7 than widely appreciated (slide 8)
- Although aggregate US earnings growth is forecast to be higher than Europe, more European companies are forecast to deliver double digit earnings growth than US ones. Opportunities for stock pickers (slides 9-10).
- President Trump’s actions have ignited tariff risk in many economies. But the stock market is not the economy. Economic exposure to the US does not automatically translate to economic exposure. China and Mexico have little direct revenue exposure. Taiwan has a lot. Canada, Europe and Japan do too (slides 11-13).
Charts of the month:
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