Equities

Current drivers of global equity markets

August 06, 2024 - 3 min read

Portfolio Manager and Head of Fixed Income – Harris | Oakmark

After hitting new highs multiple times in the first half of 2024, what might the rest of the year and beyond have in store for global equity markets? Chris Wallis, CEO, CIO, and Senior Portfolio Manager at Vaughan Nelson shares his global macro outlook, what areas are offering the most value, and risks investors should consider.

Pickup in economic activity: global growth should be stronger in the second half, with the end of a global industrial recession, pickup in Asia and the US, and liquidity provisioning by the major central banks.
Mid cap appeal: valuations, fundamentals, and earnings growth potential should favor small medium-sized capitalisation companies
Value in select companies: in future, equity markets won’t be sector driven, but by individual companies.
Prepare for choppy markets ahead: normalisation of interest rates, geopolitics, elections, and inflationary pressures are likely to make markets choppy. Investors should take advantage of the volatility.

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