Following the release of Schroders Equity Lens for July 2026, Duncan Lamont, Head of Strategic Research provides a summary of it’s findings.
To view the full July 2026 edition of the Schroders Equity Lens, click here: Schroders Equity Lens – July 2026
Summary of Schroders Equity Lens for July 2026:
Equities are expensive but underpinned by unusually strong earnings growth expectations
- US small caps (23%), EM (24%) and Japan (16%) have been big winners in 2026 (slides 5, 17-18)
- Performance has broadened out in the US but is highly concentrated in EM (slides 5-6)
- the Magnificent-7 have collectively returned 0% this year, US ex Magnificent-7 has returned 15%
- more than 80% of EM companies have underperformed, as Korean and Taiwanese chip companies dominate
- There is a bull market in earnings (slide 7):
- EM is on fire with more than 60% growth forecast for 2026 and a further 23% next year
- 24% and 19% growth is forecast for the US, for 2026 and 2027 respectively
- Most valuation metrics in most markets are near the top of their 20-year range (slide 8)
- Tactical longs for investors who are worried about the risk of stagflation (slide 9):
- 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
View the full May 2026 edition of the Schroders Equity Lens here: Schroders Equity Lens – July 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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