Trade war, geopolitical tensions, uncertainty about growth … Is the period conducive to equity investment?
Christopher Dembik Absolutely ! Individuals often tend to invest after high market increases, thus mechanically reducing their gains potential. However, periods of uncertainty, such as the one we are going through, lead to market reductions that even take high quality companies, which then displayed price access. These movements can offer real purchasing opportunities. On the contrary, it is necessary to invest when the winds are contrary: it can be very judicious.
How to join the Donald Trump hazard in its portfolio management?
When investing with a long -term horizon, it is better not to give too much importance to short -term noise, often without lasting impact on valuation. That said, it is possible to strengthen the resilience of your portfolio by positioning itself on defensive values, supposed to be more stable during periods of turbulence. This is the case of basic consumption companies such as the American distribution chain Walmart, which historically resisted during crises.
Are some titles immune to the United States’s trade war?
European reset announcements supported the defense values, which have been a good firewall in the face of trade tensions. But these titles are very expensive today. On the other hand, after the announcements of customs duties increases, in April, no geographic area or no sector really played the role of refuge value: the market has panicked, affecting all companies undifferentiated, including the most solid. The latter rebounded afterwards.
Should we buy back the American actions?
At Pictet AM, we were very positive at the start of the year, and we maintain a strong exhibition in the United States. Technological companies now display attractive valuation levels. They have good fundamentals, many liquidity and a technological advance that limit competition. In addition, we do not anticipate a recession in the United States.
Companies seem capable of adapting to the trade war, like Apple which has implemented bypass strategies with the creation of screens in Southeast Asia. Finally, even if certain management companies reposition themselves on Europe to benefit from the German recovery plan and defense expenses, their effects will probably not materialize before 2026. At best.
Can European actions continue the year on their good momentum?
The good performances of the first quarter seem to us more of a catch -up, after a year 2024 quite mediocre. But there are recall forces, especially in terms of growth. In addition, we do not see flow of flows. In March and April, only European investors sold American actions, while the rest of the world took advantage of their discount to buy them.
GOLD CARECOLE at more than $ 3,200 an ounce. Do you integrate in the wallets?
Yes, for our private banking customers. We should expect short -term profits that could cause a passenger withdrawal, but the upward trend does not seem to be over. The supply remains constrained, while demand – especially that of central banks – remains massive. Not to mention the geopolitical component, which further strengthens the attraction of yellow metal.
An article in our special investment file, published on June 19.