In their latest podcast, UBP’s Co-Heads of Swiss and Global Equity, Martin Moeller and Eleanor Taylor Jolidon, provide us with their insights into the equity space, and in particular global equities, as the year draws to a close and we move into 2025.
With earnings growth in 2024 having been stable at around 10%, 2025 could well offer attractive returns of 15%; however, with the market getting ahead of fundamentals, this could lead to sideways movement.
In terms of sectors, some are looking lacklustre, with profits coming from a few firms driven by overall market performance, but this should broaden out. Among the sectors set to improve again are healthcare and banking.
In a wider market context, a short-term view is not always useful – good returns can take time to materialise, hence the preference for fundamental earnings growth, which is the key to value creation for an equity investor. To generate this, key investable sectors include health, driven by demographic changes, and especially industry, given the green energy transition. Technology is a big capex draw, from banks to burger joints: tech is energy hungry, which can only be to the benefit of industry, such as electricity providers, as it works to meet the ever-increasing demand for energy.
The active investor is on the lookout for companies with strong individual fundamentals that will create earnings growth, create value, for both shareholders and stakeholders.
