Our global analyst outlook survey reveals a cautiously constructive view on equity performance over the next 6-12 months. We conduct this survey several times a year, pulling together the views of our equity analysts around the globe for the US, Europe, Canada, and Australia.
Performance Outlook: Constructive but Moderating Optimism
There was a little less optimism on demand and valuation, though still a favorable tilt. Meanwhile, views on the policy backdrop were mixed.
At the global sector level, our analysts have the most positive performance outlooks for Real Estate Investment Trusts (REITs), Materials, and Financials. Health Care, Industrials, and Utilities also garnered positive outlooks, albeit to a lesser extent. In contrast, Consumer Discretionary and Energy were viewed less favorably.
Regional Sentiment: Europe/UK Lagging Behind
Our analysts were slightly less optimistic on forward performance for Europe/UK than other regions, primarily due to less favorable valuation assessments. Sectors like Financials, Industrials, and Staples weighed on Europe’s valuation outlook with neutral or negative views.
In contrast, Canada has been a standout performer year-to-date and over the past month, with the US following closely in second place.
Policy Backdrop: Mixed Views Across Regions
Our analysts generally had mixed views of the policy backdrop. The main exception was Canada, where our analysts were more constructive on the Canadian policy backdrop. Key issues influencing policy assessments included tariffs and trade, regulation, and energy/climate concerns, though the focus varied by region.
