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Where next for global equities?
Alex Crooke, Portfolio Manager of The Bankers Investment Trust, discusses performance over the last year, how businesses are dealing with higher input costs amid lower consumer spending and dividend sustainability during a period of low growth.
15 Feb 2023
16 minute watch
16 minute watch
Key takeaways:
- It was a challenging year for global equity markets as elevated inflation, higher interest rates, the war in Ukraine and concerns over slowing global growth weighed on investor sentiment.
- We have been reducing our exposure to expensive growth stocks that may continue to be under pressure if interest rates remain elevated. We have been increasing our allocation to financials and energy stocks which should help with income generation in the portfolio.
- The dividend outlook remains encouraging, particularly within the banking and mining sectors. China’s reopening will also boost global growth – improving the dividend prospects for sectors and businesses set to benefit from the release of pent-up demand.
Related insights
15 Feb 2023
16 minute watch
16 minute watch
Key takeaways:
- It was a challenging year for global equity markets as elevated inflation, higher interest rates, the war in Ukraine and concerns over slowing global growth weighed on investor sentiment.
- We have been reducing our exposure to expensive growth stocks that may continue to be under pressure if interest rates remain elevated. We have been increasing our allocation to financials and energy stocks which should help with income generation in the portfolio.
- The dividend outlook remains encouraging, particularly within the banking and mining sectors. China’s reopening will also boost global growth – improving the dividend prospects for sectors and businesses set to benefit from the release of pent-up demand.