Equitiessee more…

  1. Markets to Watch This Week: U-Turn Truss Kicks Off NFP-Headlined Week

    Bilal Hafeez and Ben Ford

    The aftermath of the ‘Fiscal Event’ stole the headlines last week. Initially, GBP/USD fell to levels last seen in the 1700s, while surging interest rates sparked discussion...

  2. Prime Trade Ideas: No Reason to Panic in Volatile Markets

    Ben Ford

    Our biases in Asia FX have registered strong returns. Now, we are making changes. We closed our bearish KRW position and turned bearish on SGD...

  3. Markets to Watch This Week: Will the BoE Intervene?

    Bilal Hafeez and Henry Occleston

    It was a busy week for central bank hikes, but it was the market moves on the back of the UK Chancellor’s ‘fiscal event’ that stole the show.

  1. Earnings Outlook: Consumers in the Spotlight

    John Tierney

    After another 4.6% drop last week, the S&P 500 is trading at fair value. We look for it to trade in a range for now, and track earnings, likely lower.

  2. Corporate Credit Markets Can Withstand Rising Rates

    John Tierney

    Corporate debt has nearly doubled over the past eight years, leading people to worry that credit markets are vulnerable to rising rates and a recession.

  3. Markets to Watch This Week: A Week of Central Bank Hiking

    Bilal Hafeez and Ben Ford

    US inflation is stubborn (CPI: +0.1% MoM, +8.3% YoY; Core: +0.6% MoM, +6.35 YoY). We knew it would be, and Dominique still thinks the Fed could eventually hike to 8%.

Earnings Outlook: The Emperor Has No Clothes

John Tierney

With the S&P 500 down 4.8% last week, the implied discount rate on future earnings bumped up by 50bp.

Webinar: Probably Profitable – How Volatility Shapes Markets

Macro Hive

Options and market volatility expert Thorsten Wegener joins us on our first-ever educational webinar to discuss all things volatility...

  1. Prime Trade Ideas: Protecting Your Portfolio in Periods of Rampant Inflation

    Ben Ford

    ‘Cash is king’ has become a favourite phrase of Bilal’s. He is yet to let it go – and for good reason. The market is finally catching up with our view that the Federal Reserve must...

  2. Markets to Watch This Week: Inflation to Support Hawkishness… For Now

    Bilal Hafeez and Ben Ford

    Despite a relaxed US calendar, we had expected a busy week headlined by the European Central Bank (ECB). We got more than we had bargained for.

  3. Earnings Outlook: Some Headwinds for Tech

    John Tierney

    Most companies reported solid earnings last week and confirmed that corporate demand for tech goods and services remains robust. But some see more headwinds ahead.

Equity Sector Views: Downgrade Semiconductors

John Tierney

We remain underweight equities in our overall asset allocation framework. Within equities, we favour the S&P 500, which appears near fair value now. Other major indices still appear rich.

Oil ETFs: What You Should Know Before You Invest

John Tierney

An oil ETF is an exchange-traded fund (ETF) that offers investors exposure to the oil industry or oil as a commodity.

  1. Commodity Oil ETFs: What You Should Know Before You Invest

    John Tierney

    A commodity oil ETF is an exchange-traded fund (ETF) that offers investors exposure to oil or natural gas as a commodity.

  2. Earnings Outlook: Welcome a New Canary in the Coal Mine

    John Tierney

    Despite the Fed’s increasing efforts to contain inflation, the US labour market and industry are chugging along. Employers continue to add workers.

  3. Markets to Watch This Week: Central Bank Action, Europe’s Gas Crisis

    Bilal Hafeez and Ben Ford

    Any quietness at the start of last week was quickly reversed into Friday. The day began supportive of risk assets after a goldilocks non-farm payrolls.

Prime Trade Ideas: Trading Weakness in Asia FX

Ben Ford

John left his US equity ETF biases However, in the process, he has strongly reiterated being underweight equities, homebuilders, and consumer staples, and overweight energy...

Markets to Watch This Week: Fed and ECB Hawkishness to be Confirmed

Bilal Hafeez and Ben Ford

Jackson Hole confirmed our suspicions; the Federal Reserve (Fed) will have to hike more than the market expects.

Investing in the Equity Market

  • At Macro Hive, we offer cutting-edge equity research to keep you ahead of the market.
  • Our equity insights primarily cover US stocks on a sectoral basis while our regular reports on earnings give details on individual companies.
  • We also offer insights into European equities.

The benefits of equity investment include capital gains and dividends. However, we also see investment in stocks as a core part of a diversified strategy alongside other asset classes such as bonds and commodities. A global equities strategy offers geographical diversification, too.

It is possible to invest in equities at an individual level, but we gear most of our research around exchange traded funds (ETFs) as these provide better, more diversified exposure to macro trends instead of company fundamentals.
For most investors, equities offer an attractive way to grow wealth over the long term. There are many types of equities. And like any asset, they can be volatile in the short term. As a risk asset, they tend to suffer during downturns or periods of bearish sentiment. Yet equity investment generally offers higher returns than bonds and cash savings in the long term.

Your portfolio allocation to equities will largely depend upon your risk appetite. If you have an aggressive risk profile, you could potentially allocate 70%. With a moderate risk profile, you could consider an allocation of 50%, while a conservative risk profile might lead you to allocate 20%.
To gain an overview of our equity market investment views, read our latest Prime Trade Ideas report.

FAQ:

What is the equity market?

The equity market is a meeting point where investors and other market participants can issue and trade shares of companies. It is also known as the stock market. The trading occurs via exchanges, such as the New York Stock Exchange, or over-the-counter markets.

→ What is equity investing?

Equity investing is money that people invest in a company by buying shares of the company on the equity market. Investing in equities allows investors to own a share of the company and profit either via a rise in the company’s value (capital gains) or the generation of dividends.

→ What are equities in the stock market?

Equities in the stock market are simply shares of a company that investors and other market participants buy or sell via exchanges. There is no difference in equities vs stocks.

→ What is the market value of equity?

The market value of equity is the total value of a company’s equities expressed in its denominated currency (I.e., dollars). It is also known as market capitalization, and it is calculated by multiplying the current price of a single stock by the total number of outstanding shares.

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