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Equities

Current drivers of global equity markets

August 07, 2024 - 3 min read

After hitting new highs multiple times in the first half of 2024, what might the rest of the year and beyond have in store for global equity markets? Chris Wallis, CEO, CIO, and Senior Portfolio Manager at Vaughan Nelson shares his global macro outlook, what areas are offering the most value, and risks investors should consider.

  • Pickup in economic activity: global growth should be stronger in the second half, with the end of a global industrial recession, pickup in Asia and the US, and liquidity provisioning by the major central banks.
  • Mid cap appeal: valuations, fundamentals, and earnings growth potential should favor small medium-sized capitalisation companies
  • Value in select companies: in future, equity markets won’t be sector driven, but by individual companies.
  • Prepare for choppy markets ahead: normalisation of interest rates, geopolitics, elections, and inflationary pressures are likely to make markets choppy. Investors should take advantage of the volatility. 

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This publication (the material) has been prepared and distributed by Natixis Investment Managers Australia Pty Limited AFSL 246830 for the Vaughan Nelson Global Equity SMID Fund (the “Fund”) and may include information provided by third parties. The information in this material is provided for general information purposes only and does not take into account the investment objectives, financial situation or needs of any person. Investors Mutual Limited AFSL 229988 is the responsible entity of the unquoted and quoted class units of the Fund. Vaughan Nelson Investment Management, L.P. is the investment manager. This information should not be relied upon in determining whether to invest or continue to invest in the Fund and is not a recommendation to buy, sell or hold any financial product, security or other instrument. In deciding whether to acquire or continue to hold an investment in the Fund, an investor should consider the current PDS and Target Market Determination for the appropriate class of the Fund, available on the website www.VaughanNelson.com.au or by contacting us on 1300 219 207. Past performance is not a reliable indicator of future performance. There is no guarantee the performance of the Fund or any particular rate of return. It may not be reproduced, distributed or published, in whole or in part, without the prior written consent of Natixis Investment Managers Australia Pty Limited and IML.