Is the time up for US equities’ leadership?
The last decade belonged to US equities, but history shows that the winners change, both within, and across markets. Stock markets tend to demonstrate a level of cyclicality – even through turbulent periods, policy intervention, and even political cycles. As markets and economies recover from the global pandemic, we see 7 reasons why investors should re-think having all their eggs in that one equity basket, including earnings headwinds, regulatory scrutiny and the dreaded “winner’s curse” that we witnessed out of the dot-com bubble. Most importantly, we believe the old adage holds true – the price you pay now matters for future returns.
Sean Markowicz, CFA
Strategist, Research and Analytics