Although many investors are expecting a return to normal after inflation subsides and central banks stop raising interest rates, we believe markets are undergoing significant changes and it might be necessary  to reset expectations in this new environment.

One change already under way is the shift from narrow to broad market leadership: a handful of technology stocks have dominated markets for years, but we expect a much wider range of investments to drive portfolio returns in future.

While growth investing is not going away and new areas of technology are emerging, other sectors may have more room to shine — such as healthcare, where we are witnessing a golden age of drug development. Opportunities could also arise as dividend stocks return to prominence on a global stage. Likewise, bond markets are offering some of the highest income in years as well as the traditional diversification from equites, which disappeared in 2022. This means 60% equity/40% bond portfolios are well positioned for a comeback.

In this report, we share 10 long-term themes that our investment team is focused on right now. As these ideas illustrate, even during periods of uncertainty, it can be an exciting time to be an investor.