Equities: New extremes and a challenging opportunity set
- Positive on equity markets in India, Mexico, Brazil and Vietnam, as well as commodities, cyber security, and defence, as rearming, reshoring and restocking continue unabated in 2024.
- Underweight mega caps, as the AI hype has driven the S&P 500 Index weight concentration to an historical high which is unsustainable. We prefer equal-weighted equity indices, in addition to minimum volatility and quality factors.
- We are underweight Japanese equities on JPY appreciation risks. However, we like UK and European equities on valuation.
Head of Equity Strategy