In the following collection of charts, we a) highlight several potentially supportive macroeconomic and equity-market tailwinds (such as strengthening global industrial activity and modest institutional equity positioning); b) address what we view as some of the important risks to our thesis (including flattening global liquidity and weakening cash flows among AI hyper-scalers); and c) offer tactical portfolio guidance across various equity markets.
Key considerations, in our view, include:
- Size: overweight Small Caps vs Large Caps
- Style: give equal weight to Growth and Value
- Sectors: overweight Technology; stay neutral on Consumer Discretionary; underweight Consumer Staples
- Regions (relative to MSCI ACWI): overweight China and Japan; stay neutral on Europe; underweight U.S. and India
For a deeper dive into the data, please download our presentation here.