Convictions
Broaden the opportunity set in equities
????? Explore equity opportunities during uncertain times, and where to position in a more favorable environment
For 2024, earnings growth should remain solid. In the US, +8% earnings per share (EPS) growth is anticipated, while in Europe, the overall growth is expected to reach +2% in 2024. In 2025, both areas should experience further earnings growth, at around mid-single digits.
With this positive view on earnings, can we consider equities as an attractive area? While the Fed put remains supportive, equity indices are already anticipating an improving economic outlook even though the scenario could evolve according to the US election outcomes.
We expect stocks to benefit from solid earnings growth, and believe the high concentration of US equity returns will normalise at some point. Thus, we maintain a selective approach and focus on US quality, value and international equities.
In Europe, we continue to favour value and quality as core positions. In addition, given their attractive valuations, small-cap stocks should benefit from an economic recovery and rate cuts by the European Central Bank.
In terms of sectors, our stance is balanced between cyclicals and defensives. Among the former, segments at the bottom of the trading range appear attractive, provided the PMIs continue to improve and the Fed maintains its put.
To conclude, the second half of the year should offer opportunities to equity investors. Geopolitical risks and US elections could lead to volatility which may provide attractive entry points.
Discover Convictions themes
Salvo que se indique lo contrario, toda la información contenida en este documento procede de Amundi Asset Management S.A.S. y es a 31 de julio de 2024. La diversificación no garantiza un beneficio ni protege contra una pérdida. Las opiniones expresadas en relación con las tendencias económicas y del mercado son las del autor y no necesariamente las de Amundi Asset Management S.A.S. y están sujetas a cambios en cualquier momento en función de las condiciones del mercado y de otro tipo, y no puede garantizarse que los países, mercados o sectores vayan a comportarse como se espera. Estas opiniones no deben considerarse asesoramiento de inversión, recomendación de valores ni indicación de negociación de ningún producto de Amundi. Este material no constituye una oferta o solicitud de compra o venta de valores, participaciones de fondos o servicios. La inversión conlleva riesgos, incluidos los riesgos de mercado, políticos, de liquidez y cambiarios. Las rentabilidades pasadas no garantizan ni son indicativas de resultados futuros.
Fecha de primera utilización: 31 de julio de 2024.
Doc ID: 3765347.
Comunicación de marketing - Sólo para clientes profesionales.