Given the current market rally year-to-date, what are our thoughts on the equity markets over the next 12 months?
The performance of US equity market to date has vastly outstripped our and any other market forecasts we had seen from forecasters at the onset of the year. This rapid price appreciation is partially what led our IPC to moderate our stance on US equities earlier this year. Valuations are far less attractive than they were, and thus our expectations for future returns are modest, although the combined effects of AI and deglobalization, two long term investment themes we have described, may fuel appreciation in shares of select industries and a broader tailwind to the economy.
Did you watch our last video on Our Views on the Risk of a Recession? Check out the video here.