Over the last four years, global equities have delivered a real return of approximately zero… True or false?
Before you scream “false,” our analysis, presented in our latest Whitepaper, shows that global equity returns as measured by the MSCI World Net Total Return Index have barely beaten inflation over this period if you discount the one-time US corporate tax cut. At the same time, S&P 500 pre-tax earnings have increased by 16 per cent.
This means global equities have become cheaper and arguably less risky, creating buying opportunities in strong global brands, which are now trading at attractive prices.
Our Whitepaper also looks at how markets are becoming increasingly erratic, leading to unusual rotations in global equity markets. This, too, is providing new buying opportunities.
It also emphasises the importance of a thoughtful and disciplined investment process during periods of volatility, and the need for investors to see volatile times as an opportunity and not as a threat.