Equities

Our Economists Recommend

The latest key insight, in-depth analysis and thematic research collections

Explore our CE equity forecasts and detailed insights into the factors influencing our views, including valuations, earnings, and more.

Asset Allocation Outlook

We don’t think the AI boom in equities is over

We don’t think the AI boom in equities has run its course, despite how far it has already come. We therefore expect the US stock market, in particular, to charge ahead over the rest of this year and...

6th October 2025 28 mins read

Asset Allocation Update

The great pension switch into equities: for richer or poorer?

The flipside of pension plans’ waning demand for very long-dated bonds has been their waxing demand for equities. Indeed, in the case of US private defined contribution (DC) plans, the share of...

19th September 2025 6 mins read

Global Markets Focus

The threats from US reliance on foreign financial flows

This Focus examines the large financial inflows to the US that have accompanied the country’s persistent current account deficit. It argues that those inflows face several growing threats which risk...

29th September 2025 20 mins read

Equities Update

What’s next for US small caps?

US small caps have outperformed the average US large-cap one over the past six months or so, but we doubt that will continue.

22nd October 2025 4 mins read

Asset Allocation Focus

Are US stocks really worth a higher valuation than the rest?

The US stock market is at an all-time high, thanks in part to rapid earnings growth and expectations for that to continue. But rising valuations have also played their part, to the point where US...

28th August 2025 14 mins read

Equities Update

UK-US valuation gap reflects more than just AI hype

We expect the UK stock market will continue to underperform its more tech-heavy US counterpart as enthusiasm for AI continues to grow. What’s more, if the bubble in AI were to burst, we think there is...

8th October 2025 4 mins read

Asset Allocation Update

France’s stock market likely to remain a laggard

France’s financial markets have been under the cosh for much of 2025, as political gridlock in parliament has kept the door revolving at the Matignon. Equities have not gone unscathed, with the bond...

27th October 2025 6 mins read

US tech to keep leading the way

We think the AI-driven surge in equity markets will continue over the next year or so, with tech-heavy stock indices such as those in the US, Japan, and China outperforming while indices more tilted towards “old economy” sectors, especially commodities, lag.

With the S&P 500 and many other leading indices at all-time high after rapid gains over the past few months, concerns of a bubble about to burst are on the rise. There is no question that equity valuations are high, especially in the US. But they not yet as stretched as during the late 1990s, and the investment boom in AI-technology shows few signs of an imminent slowdown. As such, we think equities can keep rallying for a while yet: we forecast the S&P 500 to rise to 8,000 by the end of 2026.