Capital Markets: Observations & Insights
Key Observations and Themes
The Election In our view, evidence suggests investing in innovation and fundamentals is likely to outperform strategies that attempt to profit from policy changes.
Accelerating Innovation Innovation is speeding up and changing the way the economy behaves, increasingly driving stock performance.
Style Wars Powerful structural forces have caused Growth to diverge from Value. Investors looking for a reversion to the mean may be disappointed.
Lending vs. Owning With interest rates at low levels, stocks look attractive relative to bonds. We believe equities will outperform fixed income over the long term.
Economic Outlook Low interest rates and improving confidence may combine for an improvement in economic growth.
Valuation Equities may appear expensive but after accounting for low interest rates and changing business models, they may look more attractive.
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