Schroders Equity Lens

Schroders

Duncan Lamont

Research

67 Pages

Schroders reviews global equity markets through earnings, valuation, sector, and index concentration trends. The main idea is that high valuations increasingly depend on continued earnings strength, especially in emerging markets, IT, and AI related capex.

Key Takeaways

Earnings Lead Markets: EM earnings growth is forecast at 55% for 2026, with EM equities already up 26% YTD through May.
IT Drives Growth: EM IT earnings are forecast to grow 183% in 2026, while IT holds roughly 40% weights in MSCI USA and MSCI EM.
Valuations Look Stretched: U.S. equities trade at a 40 CAPE, 59% above the 20 year median, while EM forward P/E is only 3% above.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Markets
After the Reset: Time to Focus on Fundamentals
Jul 2026
AI & Labor Markets
AI-merican Exceptionalism
Jul 2026
Commodities
Securing the Oil and Gas Resources of the Future
Jul 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top