Video Series:

Macro asset-classes

“Earnings recovery is accelerating, broadening geographically as the global business cycle advances deeper into the expansion phase.” Dubravko Lakos-Bujas, Head of U.S. Equity Strategy and Global Quantitative Research

S&P 500 Price Target of 4,400: The target implies a P/E ratio of 19.6x on 2022 earnings per share and 18x on 2023 earnings per share. This is reasonable given lower rates and a stronger growth environment compared to the pre-COVID period.

A CapEx Boom is Approaching: With an attractive demand and pricing environment, capital expenditure (Capex) is likely to grow further.

Value Continue to Outperform: Value has outperformed growth by 11.2% in 4Q20 and 13.4% YTD. We have consistently advocated for value-over-growth and we would argue for a more nuanced approach and greater differentiation within styles.