Global Equities

Taking the Long View on Market Volatility

George Maris, Co-Head of Equities – Americas, says structural shifts in the global economy and market dynamics are likely to continue driving volatility in equities, but investors focused on fundamentals could come out ahead over the long term.

KEY TAKEAWAYS

  • Tightening monetary policy and elevated inflation are having a dramatic impact on equity valuations and the prospects for future earnings growth.
  • Against this backdrop and amid other factors driving market volatility, corporate fundamentals will take on more importance: the era of easy money lifting all boats has come to an end.
  • So far, the market sell-off has been broad-based, lowering valuations of some companies with strong balance sheets and favorable supply/demand dynamics. That could spell opportunity for fundamentally oriented, long-term investors.

KEY TAKEAWAYS

  • Tightening monetary policy and elevated inflation are having a dramatic impact on equity valuations and the prospects for future earnings growth.
  • Against this backdrop and amid other factors driving market volatility, corporate fundamentals will take on more importance: the era of easy money lifting all boats has come to an end.
  • So far, the market sell-off has been broad-based, lowering valuations of some companies with strong balance sheets and favorable supply/demand dynamics. That could spell opportunity for fundamentally oriented, long-term investors.

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