{"id":10432,"date":"2025-10-10T08:06:37","date_gmt":"2025-10-10T08:06:37","guid":{"rendered":"https:\/\/sarasinandpartners.com\/za\/?p=10432"},"modified":"2025-11-14T14:44:42","modified_gmt":"2025-11-14T14:44:42","slug":"six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage","status":"publish","type":"post","link":"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/","title":{"rendered":"Six Minute Strategy: In the age of froth, quality is the new courage"},"content":{"rendered":"<p>This year\u2019s rally in global equities has been fuelled by earnings largely unaffected by the US tariff agenda. World equity earnings are forecast to rise by around 13% for the year ahead with dividend growth set to top a robust 10%. US share buy-backs have been running at near record levels too.<\/p>\n<p>The rally\u2019s leaders have been cyclicals, including industrials, banks, and other high-beta retail investor favourites. Quality stocks, with their high return on equity, steady earnings and sturdier balance sheets, have trailed. That has been uncomfortable for our thematic and quality tilt, but we think it remains right for longer-term investors.<\/p>\n<p>Three reasons stand out: a cooling US economy; tariffs starting to have an impact on economic data; and valuations looking frothy, stoked by retail speculation, surging option trading, and record margin debt.<\/p>\n<p>Guy Monson argues that now is the time to insist on quality, even if that means lagging exuberant indices.<\/p>\n<p>Watch the video below.<\/p>\n<p><div class=\"responsive-container\"><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/T3KzziHpTuM?si=PO0dt6YLzkv6RnLr\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"referrerpolicy=\"strict-origin-when-cross-origin\"><\/iframe><\/div><\/p>\n<p><a href=\"https:\/\/sarasinandpartners.com\/wp-content\/uploads\/2025\/10\/Six-Minute-Strategy-October-10-2025-SP-web.pdf\" target=\"_blank\" rel=\"noopener\">Download the presentation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This year\u2019s rally in global equities has been fuelled by earnings largely unaffected by the US tariff agenda. World equity earnings are forecast to rise by around 13% for the year ahead with dividend growth set to top a robust 10%. US share buy-backs have been running at near record levels too. The rally\u2019s leaders...<\/p>\n","protected":false},"author":19,"featured_media":16389,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[140,28,148],"tags":[],"coauthors":[81],"class_list":["post-10432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economicview","category-markets","category-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Six Minute Strategy: In the age of froth, quality is the new courage - Sarasin &amp; Partners South Africa<\/title>\n<meta name=\"description\" content=\"This year, markets have been led by cyclicals, including industrials, banks, and other high-beta retail investor favourites. Quality stocks, with their high return on equity, steady earnings and sturdier balance sheets, have trailed. However, now is the time to insist on quality even if that means lagging exuberant indices.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Six Minute Strategy: In the age of froth, quality is the new courage - Sarasin &amp; Partners South Africa\" \/>\n<meta property=\"og:description\" content=\"This year, markets have been led by cyclicals, including industrials, banks, and other high-beta retail investor favourites. Quality stocks, with their high return on equity, steady earnings and sturdier balance sheets, have trailed. However, now is the time to insist on quality even if that means lagging exuberant indices.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/\" \/>\n<meta property=\"og:site_name\" content=\"Sarasin &amp; Partners South Africa\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-10T08:06:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-14T14:44:42+00:00\" \/>\n<meta name=\"author\" content=\"Guy Monson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sarasinpartners\" \/>\n<meta name=\"twitter:site\" content=\"@sarasinpartners\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Guy Monson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/\"},\"author\":{\"name\":\"Guy Monson\",\"@id\":\"https:\/\/sarasinandpartners.com\/za\/#\/schema\/person\/66421d49e781563db76a8340fb37e3d7\"},\"headline\":\"Six Minute Strategy: In the age of froth, quality is the new courage\",\"datePublished\":\"2025-10-10T08:06:37+00:00\",\"dateModified\":\"2025-11-14T14:44:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/\"},\"wordCount\":173,\"publisher\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/#organization\"},\"image\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/sarasinandpartners.com\/za\/wp-content\/uploads\/2025\/10\/web-image-six-minute-strat-081025.png\",\"articleSection\":[\"Economic view\",\"Markets\",\"Videos\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/\",\"url\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/\",\"name\":\"Six Minute Strategy: In the age of froth, quality is the new courage - Sarasin &amp; Partners South Africa\",\"isPartOf\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/sarasinandpartners.com\/za\/think\/six-minute-strategy-in-the-age-of-froth-quality-is-the-new-courage\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/sarasinandpartners.com\/za\/wp-content\/uploads\/2025\/10\/web-image-six-minute-strat-081025.png\",\"datePublished\":\"2025-10-10T08:06:37+00:00\",\"dateModified\":\"2025-11-14T14:44:42+00:00\",\"description\":\"This year, markets have been led by cyclicals, including industrials, banks, and other high-beta retail investor favourites. 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