Following the release of Schroders Equity Lens for August 2026, Duncan Lamont, Head of Strategic Research provides a summary of it’s findings.
To view the full August 2026 edition of the Schroders Equity Lens, click here: Schroders Equity Lens – August 2026
Summary of Schroders Equity Lens for August 2026:
- The hyperscaler story has not changed dramatically: revenues strong, capex spend high (slide 5-7)
- But market scepticism has risen: valuations for many big tech companies are at/near cheapest for a decade (slide 8)
- Performance continues to broaden out (slide 9):
- Value > growth
- EM, Japan, UK > US
- In the US: small cap > large cap, Magnificent-7 underperforming
- Earnings expectations continue to be strong, EM exceptionally so (slide 12)
- Despite mega cap cheapening, aggregate valuations remain high in most markets, across most valuation metrics.
- EM stands out as cheap on a forward P/E basis. This hinges on whether sky-high consensus earnings growth forecasts materialise (slide 11)
- Tactical longs for investors who are worried about the risk of stagflation (slide 13):
- value and quality styles, companies with conservative investment strategies, energy equities, defensive sectors.
- gold equities worth considering; careful security selection needed in real estate and IT. For more on this topic see this recent article: Adapting asset allocation to the risk of stagflation
View the full August 2026 edition of the Schroders Equity Lens here: Schroders Equity Lens – August 2026
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The writer’s views are their own and do not constitute financial advice.
This information should not be relied upon by retail clients or investment professionals. Reference to any particular investment does not constitute a recommendation to buy or sell the investment.
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