Industry Voice: Innovation and disruption creating opportunity

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At T. Rowe Price we believe equity valuations above historical averages in most developed markets do not necessarily mean that global equities are overvalued. Equity risk premiums in many markets still appear reasonable.

key points

 

  • Innovation and disruptive change continue to benefit a relatively small group of mega-cap companies.
  • For the first time since the global financial crisis, the world economy is in a synchronized expansion, driving steady earnings growth in most markets.
  • Barring unpredictable political or economic shocks, the global earnings recovery should continue in 2018.
  • Whether recent low market volatility persists in 2018 remains to be seen, but we do not believe low volatility in itself means a market correction is near.

 

Waves of change boosting selected mega-companies

We expect the waves of disruptive change in global equity markets to accelerate, fed by a powerful combination of technological innovation, changing consumer preferences, and evolving business models. These forces are upsetting the competitive balance in existing industries while at the same time spurring rapid growth for new products and services. Read the T.Rowe Price 2018 Global Market Outlook

 

 

Important Information

This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction.

EEA—Issued in the European Economic Area by T. Rowe Price International Ltd, 60 Queen Victoria Street, London EC4N 4TZ which is authorised and regulated by the UK Financial Conduct Authority. For Professional Clients only.

T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. All rights reserved.

 

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