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Equity Outlook  |  Q2 2018

Assessing market themes after a challenging quarter

Equity Team


  • Tariffs and geopolitical tensions have implications for equity markets, but not all the impacts are negative.
  • Despite progress with Brexit negotiations, we are cautious about U.K. equities and believe the U.K. economy remains challenged.
  • For a number of reasons, the U.S. housing market continues to be a bright spot for consumers and equity investors.

After an extended period of record advances and low volatility, global stock markets encountered their share of challenges in early 2018. Stocks began the quarter against a backdrop of optimism, but soon lost ground, beginning with a sharp downturn that pushed the U.S. market into correction territory in early February. This was followed by a series of market ups and downs that, combined with fears of a trade war, resulted in a turbulent quarter for equity investors worldwide. Such disruptions in market momentum can create compelling investment opportunities for portfolios. Looking ahead, we remain focused on business fundamentals and underappreciated earnings growth potential. We are optimistic about GDP growth trends across global markets and believe the likelihood of a recession remains low for most economies.

Next: Trump, tariffs, and trade: The impact on stocks


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Equity investing at Putnam features a tenured and talented team of portfolio managers backed by an integrated group of research analysts with worldwide reach. Our research organization is structured to focus fundamental analysis on the factors that matter most in global equity markets.

EQUITIES AT PUTNAM
Aaron M. Cooper, CFA
Chief Investment Officer, Equities
Investing since 2000
Joined Putnam in 2011
Simon Davis
Co-Head of Equities
Investing since 1988
Joined Putnam in 2000
Shep Perkins, CFA
Co-Head of Equities
Investing since 1993
Joined Putnam in 2011