Catenaa, Tuesday, November 10, 2026- Schroders says almost 50% of global equities have fallen nearly 20% from their 12-month highs by the end of October 2026.
According to Schroders’ equity outlook for November, 70% of global stocks have fallen at least 10% from their respective 12-month highs, while 49% have declined at least 20%, meeting a common definition of a bear market.
It says one in five stocks has lost at least 40%, while one in ten has fallen 50% or more in the last 12 months.
However, the report said that the MSCI ACWI recorded a positive 13% total return in the 12 months, highlighting a divergence between headline index performance and individual stock prices.
“But perspective helps: index-level damage is limited, falls followed big run-ups, and 12-month returns are still healthy,” Schroders said.
Moreover, Schroders said AI could weaken one of the US equity market’s most consistent sources of investment demand—retirement contributions from highly paid workers.
Charts showed that US defined-contribution retirement plans and individual retirement accounts held approximately $33 trillion in assets at the end of 2025, while total annual contributions approached $1 trillion, with an estimated $478 billion flowing into US equities in 2024.
“The technology driving the market could eventually weaken one of the market’s most dependable sources of demand,” Schroders said.
According to charts, a substantial share of these investments comes from higher-income employees, particularly those working in finance, technology, and professional services.
Higher earners invested an estimated $200-300 billion in US equities via their DC and IRA pensions in 2024.
As AI increasingly affects employment opportunities in these industries, Schroders argues that lower wages, job displacement, or weaker hiring could reduce retirement contributions and, consequently, demand for equities.
