US equity leadership: relic of the past or status quo?

08.11.2023 13:02 - Schroder Investment Management (Switzerland) AG (LUX & CH)

US equity leadership: relic of the past or status quo?

The US stock market's post-GFC outperformance is being questioned amidst the 3D reset: deglobalization, decarbonization, and changing demographics. Central banks are now focused on combating rising inflation, impacting borrowing costs. US companies are less sensitive to higher rates due to improved balance sheets, while international companies face challenges with bank loans and shorter debt durations. Share buybacks may be less effective. Rising labor costs and margin pressures affect corporate profitability. Companies with pricing power and asset efficiency are better positioned. The US benefits from its strong presence in the tech sector. Strong balance sheets, pricing power, and asset efficiency put the US on solid footing amid uncertainty.

You can read the full article here:

[link]