U.S. Equity Market Outperforms Global Counterparts
In a comparison conducted by Sven Lehmann, Portfolio Manager at HQ Trust, it has been revealed that the US stock market has outperformed yields in Europe, Japan, and emerging markets in 2021.
Lehmann's analysis, carried out across various sectors, shows that the US stock market has seen a 21.3 percent increase this year. This outperformance is not solely attributed to strong results from tech giants, as other sectors also contribute to the growth.
In the US, the top-performing sectors in 2021, according to Lehmann, are largely technology and growth-oriented sectors. These sectors have outperformed many other sectors globally due to strong earnings growth and ongoing innovation.
In contrast, other regions like Europe and Asia have shown stronger performances in sectors like financials and industrials. In Japan, four sectors are in the red, including healthcare heavyweights, while in emerging markets, two sectors are also in the red.
Europe, however, has seen around 18 percent growth, with sector leaders varying by investment region. For instance, energy leads in the USA and Japan, IT in Europe, and raw materials in emerging markets.
Lehmann attributes these performance disparities to differing economic recoveries post-COVID and sectoral composition differences between regions. He emphasises that it would be advisable to consult specific HQ Trust reports or interviews with him for his precise statements and data.
HQ Trust is an investment firm that provides a range of services, including portfolio management and investment advice. With Lehmann at the helm, the firm is well-positioned to guide investors through the complexities of the global market.
The analysis conducted by Sven Lehmann, the Portfolio Manager at HQ Trust, indicates that investing in the US stock market in 2021 has been more profitable than financing opportunities in Europe, Japan, and emerging markets, due to the US stock market's 21.3 percent increase. Contrastingly, in Europe, the finance sector has shown stronger performances compared to the US stock market.
