The advance of AI

The onset of Covid-19 in Europe initially saw value and cyclical stocks perform poorly. But as the continent emerged out of the first wave towards the end of summer 2020, this began to reverse.

In spite of summer jitters in financial markets, we expect governments will cautiously normalise monetary policy and global growth will remain robust. We believe there is further upside for equities, especially in cyclical sectors poised to gain from economic reopening.

For investors evaluating financial institutions, the climate crisis will soon become a key consideration. Our research shows there is already a wide dispersion between the sector leaders and laggards.