A market that defies stereotypes

Please find below our inaugural combined Quarterly Outlook from the M&G Equities Team.

This piece has commentary from each investment desk (Global, UK, EM, Asia, Impact and Convertibles) with a foreword from Fabiana Fedeli, CIO Equities and Multi Asset.

• After steep price declines, a lot of the heavy lifting has been done but the risk is still to the downside.
• The current market is defying traditional stereotypes of ‘value’ vs ‘growth’ and ‘defensives’ that are not so defensive. Stock selection remains key.
• Second-quarter earnings season will be the great leveller and sift the wheat from the chaff. Consensus forecasts remain too high.
• The sell-off has provided selective opportunities, particularly among technology names, more to come.
• We continue to favour long-term themes, such as infrastructure and the low-carbon ecosystem, able to benefit from investment ahead, independent of the vagaries of markets.