The views expressed are those of the authors at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.
Triggered by the pandemic and the resulting policies that accelerated long-building structural trends, such as aging demographics, deglobalization, and decarbonization, the world is now returning to the pre-1995 norm, when economies frequently oscillated between cycles — different stages of growth/recession and inflation/deflation. This could impact the equity landscape in several ways. A couple to consider: Increasing country and sector dispersion could mean that risk mitigation and global diversification among equities become more critical; and the expansion of market breadth beyond top tech stocks could reinforce the case for active management as the golden age of passive investing wanes. We think it is important for investors to rethink their approach to equity markets and we remain optimistic that opportunities lie ahead for those who can.
Outlook contents
New market regime, a new environment for global equities?
Global Equity Strategist Andrew Heiskell characterizes the new market regime, makes a case for shelving the old investment playbook, and shares potential investment implications for equity markets.
European equities: cyclically challenged but structurally supported
Macro Strategist Nicolas Wylenzek discusses why, despite cyclical challenges, European equities may be in the best structural position that they have been in for years.
Chinese equities: Pockets of strength for patient stock pickers
Portfolio manager Bo Meunier explores how China’s recovery may be more modest than headline numbers suggest and why, as a stock picker, she remains constructive.
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Activism – History and evolution in Japan
Investment Director Hideo Ueki examines the history of shareholder activism in Japan, with particular emphasis on the differences between current and historical attitudes toward activism.
EM equities: Can they prove the doubters wrong?
Multi-Asset Strategist Adam Berger offers six reasons that EM equity performance could be much more compelling in the decade ahead, from attractive valuations to economic tailwinds to mean reversion in the US dollar.
Have you looked at Brazilian equities lately?
Equity Research Analyst David Reid believes now is an opportune time for EM equity investors to consider implementing or augmenting portfolio allocations to Brazilian stocks.
Value investing: Alive and well in today’s market
Global Investment Strategist Nanette Abuhoff Jacobson expects the drivers of the next economic cycle to favor value stocks over their growth counterparts.
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