Last quarter global equities offered a textbook case of markets climbing a wall of worry. The MSCI Global Equity Index now stands above its level on the eve of President Trump\u2019s \u2018Liberation Day\u2019) \u2014despite the highest U.S. tariffs in nearly a century, three concurrent Middle Eastern conflicts, and direct U.S. strikes on Iran\u2019s nuclear facilities.<\/p>\n
In more normal times, any one of these events might have sparked a surge in oil prices, a stronger dollar, and an equity sell-off. This time, the reverse occurred: a high-beta rally led by industrials, financials, and tech.<\/p>\n
We continue to favour quality\u2014companies with strong balance sheets, steady earnings, and high returns on equity. Why? Because tariffs can rise further and U.S. consumers will eventually feel the pinch of higher import costs. Asia\u2019s manufacturing surpluses may soon wash up on Europe\u2019s shores, weighing on prices and profitability.<\/p>\n
To protect margins, Western firms will need resilience and pricing power. We explore what that means for your portfolio.<\/p>\n
Watch the video below<\/p>\n