Key Metrics
12.83
Heat Index-
Impact LevelMedium
-
Scope LevelGlobal
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Last Update2025-09-02
Key Impacts
Positive Impacts (3)
Negative Impacts (5)
Event Overview
This event illustrates the impact of shifting investor sentiment resulting from concerns about asset overvaluation and labor market instability. It highlights how investment firms may adjust their strategies based on perceived imbalances and volatility, reflecting broader market anxiety about sustainability and future growth. This recalibration underscores the prevalence of caution in capital allocation within unpredictable economic and employment environments.
Collect Records
Schroders Downgrades Global Equity Rating to Neutral Citing Valuation and US Employment Risks
Schroders investment group downgraded its global equities rating from "positive" to "neutral," citing concerns about high valuations, excessive positioning, and volatility in US employment data. Patrick Brenner, Chief Investment Officer of Multi-Asset at Schroders, stated, "We believe the risk-reward ratio for equities in the near term is becoming less attractive." He also said that the firm does not view this move as marking the end of the current market cycle, but finds it difficult to identify catalysts to drive markets significantly higher in the short term. Schroders also downgraded its rating on US equities due to elevated valuations and increasing risks of US economic growth underperforming expectations. Additionally, the group lowered its rating on European equities outside the UK, citing concerns that tariff risks and a strengthening euro could offset the momentum from an economic rebound in the region.