Since President Trump took office on Jan. 20, 2025, the U.S. has been the worst performing stock market of the entire G7. While Trump likes to shoot from the hip when it comes to economic policy, investors in U.S. assets, it seems, do not appreciate this approach. The uncertainty created by further tariffs is also creating a headache for firms who are trying to figure out how their supply chains are going to be impacted, and to what extent higher costs will reduce their competitiveness, thereby negatively impacting their share prices. Exhibit 1: Performance of G7 stock markets One way

Funds investing in U.S. equities enjoyed healthy inflows over the course of the last few years. Does that mean that European investors have overweighted U.S. equities in their portfolios, or did they just catch up with the weighting of U.S. equities in the prominent global equity indices? With regard to the estimated fund flows it needs to be said that equity global was the best-selling equities classification over the course of the last few years. The high inflows into funds classified as equity global are not surprising since equity global is the largest Lipper global classification in Europe by assets

With the likelihood of the Fed beginning tapering in 2021 and rate hikes seemingly destined to follow in 2022, we decided to examine the performance of the value and growth indices relative to changes in 10-year yields. Using Datastream, we charted the performance of the indices and we saw that growth has materially outperformed value since the beginning of 2019 (Exhibit 1). Exhibit 1: Russell 1000 Growth Index vs. Russell 1000 Value Index Performance Since 1/1/2019 Much of the outperformance of growth vs. value has been explained by the persistently low-rate environment. As the cash flows from growth stocks tend

Refresh the chart in your browser | Edit the chart in Datastream The recovery in global equity markets since late March has been remarkable. By close of business on 25 May, the S&P 500 was just over 10% below its mid-February peak. Against the backdrop of a global pandemic, the like of which has not been seen in 100 years, and with many forecasters now expecting double-digit contractions in the size of most major economies, this is a remarkable achievement. Since the early 1990s, the ratio of the S&P 500 to US nominal GDP — a kind of economy-wide PE