Quality remains crucial
Global equity markets remain robust despite a more challenging environment. Following a strong market phase dominated by the US, fundamental dynamics are increasingly coming to the fore. Corporate earnings are stable, margins are resilient and expectations for the coming quarters are broadly supported. At the same time, differentiation between regions and sectors is increasing, making selective allocation more important than broad market exposure.
The US stock market continues to be characterised by structural growth and high innovative strength. While equity performance has recently been dominated by a few large technology stocks, a broader earnings base is increasingly emerging. The focus is on quality companies with reliable cash flows and solid capital structures.
Europe offers attractive prospects compared to other regions. Fiscal stimulus and supportive monetary policy are improving the environment, particularly for cyclical sectors with outstanding earnings.
The Swiss stock market impresses with its strong quality structure. Global market leaders in healthcare, consumer staples and industrial sectors provide stable cash flows, high profitability and attractive dividends. Switzerland therefore remains a key component of balanced equity portfolios.
The outlook for emerging markets has continued to brighten. Falling US interest rates, a weaker US dollar and rising earnings expectations are providing support, with Asia remaining particularly attractive.
Overall, the outlook for equities remains positive. However, quality, diversification and regional balance are crucial.
