Schroders examines how AI disruption fears have distorted global equity markets, creating a divide between AI winners, perceived safe havens, and de-rated quality-growth companies. The paper compares today’s market concentration to 1999, noting more than $660 billion in hyperscaler data center spending and $1.23 trillion in margin debt.
Distorted Equity Markets: A Generational Opportunity in Quality
Schroders
Simon Webber
Research
6 Pages
Key Takeaways
Quality looks cheap: Developed ex-US quality valuation spreads are approaching multi-decade lows across the 1987 to April 2026 dataset.
Recruit adapted: Recruit’s revenue per job posted rose 17% year over year after integrating AI into its hiring platform.
Old economy won: Autozone and Deere returned 17% and 12% annualized from 2000 to 2010, while the S&P 500 returned -1%.
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