Colonnade Advisors LLC’s Post

“We forecast that equities in the US will continue to fare especially well through the end of 2025”. After the S&P 500 hit our end-2024 forecasts six months earlier than scheduled, Chief Markets Economist John Higgins introduces our Q3 Asset Allocation Outlook and explains how we think equities will perform over the next couple of years. Download the key takeaways from our client report now. https://lnkd.in/e9xzXvpZ #equties #assetallocation #returns

How useful are equity valuations at predicting what's going to happen over the next year? Not very. Looking out over 10 years however we see that valuation has a significant impact on expected returns. With the S&P sitting at a forward PE of 21+ vs 10-14 in Europe, the UK and Emerging Markets, a globally diversified portfolio looks to provide better longer term prospects for investors than betting the house on the US. #assetallocation #valuations #wealthmanagement Source: J.P. Morgan

*CorpCare Daily Market Wrapup - 19 July 2024* >Indian benchmark equities rallied to a record high on Thursday, supported by the IT sector, following upbeat corporate earnings, and on hopes of a rate cut by the Federal Reserve. >The yield of the new 10-year benchmark 07.10% 2034 paper ended marginally higher at 6.97% on Thursday compared to 6.96% on Tuesday. >The rupee ended marginally lower against the US dollar on Thursday on corporate outflows and oil companies' dollar bids. #investments #portfoliomanagement #investing #wealthmanagement #capitalmarkets

With nearly $132 billion of deal value year-to-date, U.S. private equity activity is up 54% YoY, but not for the reasons many expected. While the thought going into 2024 was that private equity dealmaking would accelerate on a series of interest rate cuts by the U.S. Federal Reserve, those rate cuts have yet to materialize. Rather, it's the record amounts of dry powder and companies looking to capitalize on high equity values that are the main drivers of much of this activity. Regardless of the reasons, we're glad to see dealmaking pick up considerably. #privateequity #mergersandacquisitions #investmentbanking

The widespread expectation was that #privateequity #dealmaking was going to thrive due to a hopeful cut of interest rates by the Federal Reserve. #PE dealmaking is thriving, but not because of any cuts. According to data from LSEG, “U.S. private equity activity is up 54% year-over-year, with nearly $132 billion of deal value.” Rates have not budged but PE is still defying expectations. Good news for all of us in the private equity dealmaking ecosystem! #deals #PrivateEquity #InterestRates #Finance

BLUF: Equity valuations are not range bound. They move higher over time as companies get more efficient and margins improve (see chart below). After double digit S&P 500 returns in 2023 and a strong start to 2024, there is mounting concern of stretched valuations. That may be overblown. The average trailing S&P 500 PE multiple from 1949-1959 was 11.8x. By 2013-2023 the average had risen to 23.1x. Current valuations may be reasonable, reflecting future expectations of modest growth and improvement in operating efficiency. Check out Global X ETFs Inflection Points to see some themes that could be attractive in the current environment: https://lnkd.in/drsvRFVu #investing #valuation #margins #economics #investmentstrategy #thematicinvesting

Over the next decade, anticipate higher returns on bonds compared to the previous years, while equities may encounter some challenges. Download these key takeaways from our annual Long Run Asset Allocation Outlook report for detailed insights. https://lnkd.in/e9SvE6wZ #assetallocation

Expectations that interest rates have peaked and will come down in 2024 have significantly improved the outlook for M&A in the U.S. M&A activity and optimism have also improved in Asia Pacific and Europe. Private equity firms that have largely been on the sidelines as interest rates rose and are behind on distributed to paid-in capital (DPI) ratios are likely to be more aggressive in deploying capital and harvesting investments to return capital to their limited partners. Interested in reading more of Kroll’s top trends for 2024? Explore here: http://ms.spr.ly/6046cu24g #privateequity #valuations

Investors take note! Small cap equities saw their third-best month relative to large cap since 1979. What’s driving this shift and how should you adjust your portfolio? Read our latest analysis to stay ahead. #MarketReview #FinancialAdvice #EquityMarkets https://loom.ly/ipDki_0

Chart of the Day: Italian equities have been outperforming the S&P 500 recently. #chartoftheday #investmentmanagement #wealth #income #growth #wealthmanagement #investmentmanager #Financialnews #FinancialTrends #MarketTrends #FinancialMarkets #EmergingMarkets #InvestmentTrends #GlobalEconomicTrends #EconomicIndicators #Italy #equities #sp500