Chart of the Quarter
Source: Goldman Sachs Asset Management
Decelerating GDP growth mixed with increasing rates and peak profits imply the future return of equities will come under pressure. Looking ahead we anticipate companies who can innovate, disrupt, enable, and adapt that will be well positioned to thrive into the future. While we now favor U.S. markets, the rest of the globe looks quite appealing in the long run, especially with the dollar weakening (at some point) for disruptive companies to experience outsized growth. In a world of limited wealth creation, we will remain focused on segments of the market that can be potential wealth creators of the future.