Cyclicals vs Defensives
The first stop of the EIS Special Series: PIGS Have Wings takes us to Portugal.
The Netherlands has a healthier and more stable economy and demography than its European peers. Investors should stay overweight developed European equities, including Dutch equities, relative to emerging European equities.
The Vicious Troika remains a long-term threat, but over the short term, rates will likely have another leg down on growth concerns, offering support to equities, which are now fairly valued and are no longer overbought. Longer-term outlook remains negative. The Magnificent Seven will likely lead a tactical rebound. Overweight Growth vs Value and FSemis.
What will the next manufacturing cycle look like in Europe and how will risk assets perform? Lessons from the recent past.
In this Strategy Outlook, we present the major investment themes and views we see playing out for the rest of 2023 and beyond.