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Investment Weekly

Momentum has fared well, does that change in H2?
19 July 2024

    Chart of the week – Momentum has fared well, does that change in H2?

    Chart of the week – Momentum has fared well, does that change in H2?

    US stocks have been a big winner in 2024 – driven by two key themes. First, the supportive backdrop of resilient growth, falling inflation, and recovering corporate profits all pointing to an economic soft landing. Second, the exceptional outperformance of the so-called Magnificent Seven (Mag7) technology mega-caps. From a factor perspective, it has meant that Momentum – the idea that strong trends in prices and profits tend to persist – has outpaced both Growth and Value by a wide margin. But can that continue in H2?

    More from this week:

    Market Spotlight

    • Fed turbocharges EM

    Lens on…

    • Asia’s Magnificent Seven
    • China’s profits shift
    • Upside in Asian infrastructure

    Download the full report PDF, 3.0MB