As of September 16, 2024, Murdo MacLean, a client investment manager at Walter Scott & Partners, emphasizes the importance of corporate earnings and valuations in driving equity markets during a transition from a Covid environment to a higher inflationary backdrop. He notes that geopolitical tensions, particularly between the U.S. and China, are impacting sectors like semiconductors, which have been under scrutiny due to their critical role in technology and manufacturing. The industrial space in the U.S. appears to be softening, with companies like Fastenal and Canadian National Railroad reflecting broader economic health concerns. Mixed performance is observed in consumer sectors, where luxury spending is cooling, indicating a shift in consumer behavior. MacLean advises caution around high valuations in technology, using Nvidia's recent performance as a cautionary example. This perspective aligns with Principal Asset Management's view that continued corporate earnings growth will support global equities valuations, particularly as the Magnificent Seven tech giants maintain profitability. The firm expects world stocks to achieve 10% earnings growth in 2024, driven by advancements in artificial intelligence and consumer demand in Asian markets, particularly in India, Taiwan, and South Korea. Additionally, BNP Paribas Wealth Management recommends focusing on county and sector laggards while remaining invested in U.S. equities, regardless of the upcoming election outcomes. They predict moderate global growth and expect the gold price to rise due to central bank purchases and sustained demand in mainland China. UBS Global Wealth Management also highlights the importance of quality and large caps in Asia, particularly in China and India, while expressing confidence in China's medium- and long-term opportunities. As the global economic landscape evolves, investors are advised to remain selective and consider risk management strategies, especially in light of potential geopolitical risks and market corrections. [5a68758c] [63b75ffd] [7eaebce2] [1f4f1a7e] [3a4b57f6]