Key drivers for global equities in the second half

After hitting new highs in the first half of 2024, what might the next six months 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 medium-sized capitalization companies in 2H.
• Value in select companies: Going forward, equity markets won’t be sector driven, but by individual companies.
• Prepare for choppy markets ahead: Normalization of interest rates, geopolitics, elections, and inflationary pressures, should make markets choppy. Investors should remember to take advantage of that volatility. 

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