The Big Picture “All Is Well …” – European Equity Strategy Outlook
All is well…or not? European equity markets started the year 2019 pricing in too much pessimism. In our view. 2020 could be different, and the markets might start the year pricing in too much optimism.
Indeed, given the sharp rerating this year across all sectors, European equity markets are already pricing in much better newsflow going forward. The most cyclical segments of the market have strongly rebounded since last summer on the back of an improved trade deal and Brexit expectations. All is well…
…or not? The recent rerating does not leave much room for disappointment, at a time when the US economy is at the end of the cycle and central banks have already used up a lot of their ammunition, most notably the ECB. If 2019 was all about lower bond yields and rerating, 2020 could well be about earnings deterioration.
How to gear portfolios to fiscal easing as well as public spending measures? How to position in this low growth environment? What to do with deep value sectors? Does earnings visibility still matter? How could the US election impact European Pharmaceuticals? What does the new European commission mean for regulated sectors?
In their 2020 European Equity Outlook, Societe Generale equity strategists address all these questions facing investors, and more, sharing their key views and analyses.
About Societe Generale Cross-Asset Research
Societe Generale Cross-Asset Research is composed of more than 200 Analysts, Strategists, Economists and Quant, combining their expertise into ‘Research-based’ and innovative solutions suited to client’ needs: fundamental studies and expert views, investment ideas and long-term strategies, trade ideas and tactical baskets, thematic and systematic indices, quant solutions. On top of its established UK and Western European base, Societe Generale Cross-Asset Research benefits from a global coverage thanks to its presence in the US and in Asia (Hong Kong, Singapore, Tokyo and Bangalore) and Societe Generale local networks in Eastern Europe.
This editorial contains financial analysis which reflects the opinion of the Cross-Asset Research department of Societe Generale at the date of its publication. It does not necessarily reflect the views of the other departments of Societe Generale nor the official opinion of Societe Generale. This interview is dedicated to institutional and professional investors and is not deemed to be seen and used by retail investors for investment purpose. The viewers shall consult their own financial advisers to make their own appraisal.