pt
PT
Portugal
pt-PT
pt_intm_classes
intm
Intermediary
pt
pt
scientist

Insights

Columbia Threadneedle Sustainable Outcomes Global Equity Strategy Q2 update

Pauline Grange
Pauline Grange
Portfolio Manager, Global Equities

“The Magnificent 7” refers to the seven biggest US technology related stocks1 which, except for Tesla, helped to drive markets to record highs at the end of the 2Q.

This rally was fueled by excitement around the Artificial Intelligence (AI) secular theme, which in turn drove US market concentration to unprecedented levels with the top 10% largest US stocks accounting for around 75% of the US stock market.

But the valuation moves in the Magnificent 7 has not just been about re-rating – their economic profit has grown strongly from $40 billion in 2010 to a forecasted $460 billion in 2024, generating 26% of the total US market economic profit, roughly equivalent to their valuation in the market.

But with momentum and positioning in technology overextended, it didn’t take much for cracks to start to emerge by quarter end. We took advantage of the strong momentum in technology stocks over the quarter by taking some profit across several of our technology holdings including two of the Mag 7, Nvidia and Microsoft, as well as global leading semiconductor foundry, TSMC.

Interested in learning more?

Read the full Sustainable Outcomes Global Equity update for information on the US Inflation Reduction Act, a deep dive into ‘our ageing world’, and new positions for the SOGE strategy.

Tópicos principais

Subscreva para receber insights

Personalize os tipos de insights e informações que gostaria de receber de nós.

Artigos mais recentes

High-quality bonds are an important portfolio diversifier in uncertain markets.
World leaders are getting older and global democracy scores are falling. What are the potential outcomes for global markets?
Our fixed income team provide their weekly snapshot of market events.
Share article
Key topics
Related topics

PDF

Columbia Threadneedle Sustainable Outcomes Global Equity Strategy Q2 update

1Magnificent 7 include Apple, Microsoft, Nvidia, Alphabet (Google), Amazon, Meta (Facebook), and Tesla (as of July 2024)

Important information

For use by Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

 

In UK Issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority.

 

In the EEA issued by Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Societes (Luxembourg), Registered No. B 110242, 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg.

 

In Switzerland issued by Threadneedle Portfolio Services AG, Registered address: Claridenstrasse 41, 8002 Zurich, Switzerland.

 

This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors’ with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

columbiathreadneedle.com

Related Insights

4 Abril 2025

David Egan

Senior Research Analyst

Dick Manuel

Senior Analyst, Equity Research

How artificial intelligence is reshaping financial services

AI is helping enhance efficiency, reduce costs and improve decision-making.
19 Março 2025

William Davies

Global Chief Investment Officer

Navigating market volatility amid US tariffs and policy uncertainty

Amid uncertainty in equities and credit markets, we remain focused on long-term investment fundamentals and building portfolios to weather the storm and deliver for clients.
3 Março 2025

David Egan

Senior Research Analyst

DeepSeek: evolution, not revolution, in artificial intelligence

What is DeepSeek’s real impact on artificial intelligence, and what does it mean for investors?
17 Abril 2025

Gene Tannuzzo

Global Head of Fixed Income

Fixed income update: Bonds reclaim role as a volatility buffer

High-quality bonds are an important portfolio diversifier in uncertain markets.
15 Abril 2025

Gary Smith

Client Portfolio Manager, Fixed Income

Democracy in decline: the impact on financial markets

World leaders are getting older and global democracy scores are falling. What are the potential outcomes for global markets?
14 Abril 2025

Fixed Income Desk

In Credit - Weekly Snapshot

In Credit Weekly Snapshot – April 2025

Our fixed income team provide their weekly snapshot of market events.

Important information

For use by Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

 

In UK Issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority.

 

In the EEA issued by Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Societes (Luxembourg), Registered No. B 110242, 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg.

 

In Switzerland issued by Threadneedle Portfolio Services AG, Registered address: Claridenstrasse 41, 8002 Zurich, Switzerland.

 

This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors’ with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

columbiathreadneedle.com

Por favor, confirme alguns detalhes pessoal para acessar o seu centro de preferências

*Campos obrigatórios

Something went wrong, please try again

You have now access to our preference centre to control which insight you receive

To view and control which insights you automatically receive from us, please visit the preference centre.