FTDS - Equity Outlook: Making Way For The Magnificent Others

2024-07-03 09:41:00 ET

Summary

• Global stocks posted healthy gains in the first half of 2024, although second quarter performance moderated from the previous quarter’s breakneck pace.
• In a trend that has become familiar to equity investors, large-cap market breadth was again highly concentrated, with a good share of the S&P 500’s gains coming from a disproportionately small number of large technology companies.
• As the third quarter progresses, we believe conditions are favorable for equities, but investors face uncertainty beyond just inflation and narrow market concentration—including changing political landscapes.

By Nelson Yu

Despite narrow market concentration, we see opportunities in high-quality stocks that haven't yet been rewarded.

Global stocks posted healthy gains in the first half of 2024, although second quarter performance moderated from the previous quarter's breakneck pace. With inflation still sticky and equity returns concentrated, the time may be right for investors to broaden their horizons....

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