News and Research
Renewed conflict in the Middle East brought energy prices and inflation back into focus. Stocks tied to the AI theme partially gave back early-year gains as crowded positioning unwound. Global growth remained steady, supported by AI investment despite policy uncertainty.
Global equities advanced as easing U.S. and Iran tensions reduced energy supply fears. The AI theme supported equity gains as data center spending and chip demand lifted earnings. Oil prices retraced gains, but the temporary surge complicated the inflation outlook.
Global equities reached early highs on AI optimism before reversing on geopolitics and macro uncertainty. Despite rising geopolitical risks, the outlook for global economic growth remained steady. Growing scrutiny of private credit increased concerns about AI disruption and broader credit risk.
Global growth proved resilient, supported by consumer spending and sustained AI investment. OECD forecasts slower GDP growth in 2026, with wages easing and inflation returning to target levels. A weaker U.S. dollar supported international equities, led by Japan and broad based gains across Europe.
In this paper, we discuss the historically wide P/E discounts and dividend premiums which we believe bode well for the relative performance of EAFE over U.S. equities in the years to come. The debt maturity profile of the U.S. also presents challenges, given its extremely short-term composition. One-third of U.S. debt will mature in the coming year, all subject to higher refinancing rates. As this occurs, interest expense as a percent of tax revenues collected will soon approach and likely exceed 50% – a level seen only once before in the post WWII era.
Watch this video, as we explore the factors that we believe position SGA for success in a changing market landscape, including our view of the strategic advantages of an integrated quantitative and fundamental approach, and the prospective benefits of international diversification.
In this paper, we review how our January 2022 view has played out – where we were on target, where we fell short, where the verdict is still out, and why we believe there’s never been a better time for an international core equities manager, such as ourselves.
In this paper, we share thoughts on SGA’s strategies and approach, and why we are more excited today than at any time in recent memory. Our conclusion is that if one believes the type of companies our process identifies makes sense – higher quality, consistent growers trading at relatively attractive valuations – we believe there has rarely been a time where the cost of owning such characteristics is more attractive than today.
The New Year is a time to reset, examine the past and, more importantly, to assess the future with a clear mind and a blank sheet of paper. In this paper we look beyond SGA’s own investment strategies to set a broader stage for thinking about the best way forward in 2022 and beyond.