News & Insights

Riding the equity market rollercoaster

August 13, 2025

Time to Read: 3:20 min

In this video, Walter Scott client investment manager Murdo MacLean reflects on a volatile period for global equity markets and outlines why he believes diversification and valuations matter.

Key points:

The first quarter of 2025 saw a rational rotation away from US tech’s ‘Magnificent Seven’ due to high valuations, but their rebound was swift and strong.
Diversification and valuation discipline remain crucial, considering the Magnificent Seven alone drove nearly 50% of global equity returns last year.
History shows dominant sectors change over decades, meaning investors should question if current tech valuations fairly reflect growth prospects.
Company fundamentals and appropriate valuations remain key amid ongoing market uncertainties and evolving economic conditions

Chart of the week | Macroeconomic

Cuts are coming

Last Friday, Federal Reserve Chair Jerome Powell described a shift in the balance of employment and inflation risks, and the market rallied on the news. For us, nothing has changed. We have been closely monitoring the labor market and indicators of inflation, and we continue to expect two rate cuts this year.

Chart of the week | Macroeconomic

Higher margins drive robust earnings

Second quarter earnings season is winding down. Nearly all companies have reported, and the majority beat expectations as margin estimates continue to rise.

Article | Equities

The new arsenal of European defence

As Europe boosts defence spending in response to rising geopolitical tensions, the technological transformation of warfare is changing how that money is spent, writes Walter Scott investment manager Connor Graham. Now it’s more cybersecurity and sensors and fewer bombs and bullets.

Chart of the week | Macroeconomic

Earnings season wrapping up on a high note

Second quarter earnings season is winding down, but earnings are up, and better than expected. Despite some potentially concerning signals from the real economy, including muted job gains, and possible seasonal volatility, we remain constructive on equities. A positive second quarter earnings season strengthens our conviction.