Equities highlights


  • Historically, geopolitical crises have provided reasonable entry points for long-term equity investors.
  • As the Federal Reserve facilitates tighter monetary policy, and the cycle matures, our view is that investors should consider moving up in quality (we prefer U.S. Large and Mid Cap Equities) and reducing cyclicality.


  • We anticipate earnings growth will experience challenges as operating margins fall while interest, labor, and input expenses rise.
  • Amid the volatile market conditions we prefer U.S. equities over international equities. We also favor increased emphasis on quality over cyclicals in our sector positioning, and selectivity at the subindustry level.


  • International equity markets face competing forces that ultimately keep us less favorable compared with U.S. equities for the balance of 2022 and through 2023.
  • A strong U.S. dollar will likely be a headwind for international markets overall. A recession in Europe is expected to weigh on developed-market returns. Meanwhile, slowing global and Chinese economic growth as well as higher interest rates in the U.S. and other developed markets should be a drag on emerging-market returns.