Executive Summary

  • An Increasingly Cautious Near-Term Equity Outlook — Plotting our sector and regional equity recommendations on the face of an “investment clock” suggests an increasingly cautious near-term outlook for global equities.
  • A Tilt Away from Cyclical Sectors and Regions — Last month, we tilted further from cyclical sectors and regions. As for sectors, we are underweight Energy and Materials, neutral Industrials. In terms of regions, we are underweight CEEMEA and Latin America.
  • The Biggest Gains Behind Us? — Our current outlook, which is driven by bottom-up factors, suggests that the biggest gains for equity markets in the current cycle may be behind us.


Figure 1: The Cornerstone Capital Global Equity Strategy Investment Clock

GMSR_investment_clock April update.
Source: Cornerstone Capital Group

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Michael Geraghty is the Global Markets Strategist at Cornerstone Capital Inc. He has over three decades of experience in the financial services industry including working as an investment strategist at UBS and Citi.