Following the release of Schroders Equity Lens for June 2026, Duncan Lamont, Head of Strategic Research has provided a useful summary of it’s findings.
To view the full June 2026 edition of the Schroders Equity Lens, click here: Schroders Equity Lens – June 2026
Summary of Schroders Equity Lens for May 2026:
- There is a bull market in earnings: 2026 earnings expectations continue to be revised higher (slides 5-7).
- EM is on fire with 55% growth forecast for 2026 and a further 20% next year
- IT sector is in the driving seat: 180% earnings growth forecast for EM IT this year, ~50% growth forecast for US/Japan IT
- Energy and materials sector earnings also growing strongly, but a decline forecast for energy earnings in 2027
- Performance to end of May largely reflects these shifts (slides 8-11):
- EM equities up 26% YTD.
- Globally, IT companies have rallied over 40% in the past two months, to sit on 32% YTD return
- IT has ~40% weight in MSCI USA and MSCI EM, driving these markets higher more recently
- Taiwan and Korea’s tech leaders powered them to overtake China as the biggest markets in MSCI EM. Both are highly concentrated markets, vulnerable to sentiment shifts
View the full May 2026 edition of the Schroders Equity Lens here: Schroders Equity Lens – June 2026
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