RSMR's O'Neill: regime change rules the world

Fundamentals, valuation and sentiment

The past decade has been a remarkable and benign period for holders of financial assets, with markets led by growth stocks, especially large-cap US technology names.

In the decade ending 31 December 2021, total returns on US equities averaged 13.7% per annum whilst the Nasdaq delivered a remarkable 21.4%. Global equity markets delivered over 9% in US dollar terms over the decade. Looking at bond markets, US Treasuries delivered positive returns of 3.0%, a major factor behind traditional 60/40 portfolios performing consistently well. Investment regime change Until this year, market setbacks in the post financial crisis period have been caused by concerns surrounding demand rather than supply shocks. A world driven by supply rather than demand shocks...