What’s Driving Regional Performance
What’s Driving Regional Performance? Tech vs Financials
We are seeing distinctly different opportunities and risks across
the Americas, Europe, and Asia. Equity factors are diverging.
Large-cap growth continues to lead in the U.S., while small-
and mid-cap value is ahead in markets outside the U.S. This
reflects two powerful forces:
- The AI-driven boom in the U.S., where technology (mostly
growth) now accounts for over 35% of the benchmark - The end of negative interest rates in Europe and Japan,
where Financials (typically seen as value) make up nearly
25%. Yet we view many of our European and Asian
financial holdings not just as value plays, but as cheap
growth opportunities
More of the same, or something else?
Will this rare combination of a narrow U.S. bull market (led by mega-cap growth and a broad ex-U.S. rally (led by small/mid-cap value) last? Early signs suggest leadership may be shifting. Some year-to-date winners are stalling while some laggards are finding support. For example, we are identifying new opportunities in the previously beaten-up healthcare sector, where earnings and price momentum are turning positive thanks to new drug launches. In September, healthcare insiders became significant net buyers of their own shares for the first time in a very long time, marking their most active buying in more than a decade
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
How can we help?
From our very first conversation to ongoing support, our teams of experts are here to answer your investment needs.