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September Equities Outlook in 5 Charts


1. Global growth continues to slow, and the escalation in the trade war, weakness in U.S. data, and politics have increased the probability of a global recession in the next 12 months. The silver lining, at least in the short-term, is that coordinated central bank easing will continue to provide some support to risk assets.

2. We see tactical upside given that sentiment has become very bearish and we are heading into a better seasonal period.

3. Absolute valuations in global equities are not stretched and, relative to bonds, have gotten more attractive with a drop in rates.

4. The U.S. continues to have better growth momentum and earnings momentum versus international markets. Developed markets face less policy flexibility and heightened political challenges, while EM markets face trade headwinds and a persistently strong U.S. dollar.

5. In terms of U.S. sector exposure, we favor an overweight to tech, staples, and REITS.

 

*The source on all charts are Sage and Bloomberg.

To view our September Fixed Income Outlook in 5 Charts, click here.

 

Disclosures: This is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase or sale of any security, strategy or investment product. Although the statements of fact, information, charts, analysis and data in this report have been obtained from, and are based upon, sources Sage believes to be reliable, we do not guarantee their accuracy, and the underlying information, data, figures and publicly available information has not been verified or audited for accuracy or completeness by Sage. Additionally, we do not represent that the information, data, analysis and charts are accurate or complete, and as such should not be relied upon as such. All results included in this report constitute Sage’s opinions as of the date of this report and are subject to change without notice due to various factors, such as market conditions. Investors should make their own decisions on investment strategies based on their specific investment objectives and financial circumstances. All investments contain risk and may lose value. Past performance is not a guarantee of future results.

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