28 October 2024
A quality approach for small-cap success
Over the past three years, small-cap indices like the Russell 2000 in the US have lagged their large-cap counterparts. In Europe, small caps have also endured a steep correction, trading at historic lows relative to large caps. However, signs point to a potential turnaround. Easing inflation, stabilising supply chains, and anticipated shifts in monetary policy suggest that an active approach to small caps may offer compelling opportunities for equity portfolios.
25 October 2024
China's stock market: a deflationary spiral or technological renaissance?
The MSCI China index has lost nearly two-thirds of its value from its 2021 highs to its 2022-2024 lows. As investor confidence wanes, it is essential to assess the underlying drivers. From a broader perspective, we believe China’s policies align with its ambition to become a technological powerhouse by 2035. While it is unclear if this will directly boost stock market performance, we prefer to focus on individual companies, as outcomes depend on individual factors like governance and competitive positioning. Yet, with low valuations and fresh monetary and fiscal stimulus in play, we see attractive long-term opportunities.
22 October 2024
Do not wait for the US election outcome
The US presidential election is a highly publicised event, taking place every four years at the beginning of November. The Election Day is fixed as the Tuesday after the first Monday of November in years that are divisible by four. This year, it falls on Tuesday, 5 November.