Perspective

Webinar: The economic recovery continues


  • Global growth remains remarkably strong, but the rate of growth may now have peaked. 
  • We still expect equities to deliver positive returns and maintain our overweight exposure to the asset class. However, performance may not be as strong as it has been so far this year and there could be periods of volatility.    
  • While equity markets look expensive, this doesn’t mean they can’t continue to generate attractive returns. 
  • Strong earnings growth this year means that valuations are looking much more reasonable than they were coming into the year.
  • We have looked at previous periods where markets appeared expensive based on long-term measures and found that very often they have continued to perform well.
  • Evidence continues to suggest that this year’s rise in inflation will be transitory. Core inflation, which excludes energy and food prices, remains contained. However, we could see inflation start to rise again later next year.
  • We continue to like “value” sectors within the stock market, with a preference for higher quality companies.
  • We retain the defensive holdings within our portfolios. Given the risk of higher inflation, we prefer defensive assets that offer inflation protection such as gold and inflation-linked treasury. 

Watch the video above to find out more.

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Registered Office at 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

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James Brennan

James Brennan

Portfolio Director james.brennan@cazenovecapital.com