The interview: 'Our favourite company is Abbott Laboratories'
'Thanks to the focus on innovative technologies it can grow further. Also interesting are Vertiv, Cummins, Johnson Controls'.
3' min read
Key points
3' min read
Most probably. the large indices such as the S&P 500 or the Msci World will struggle to replicate the performance of recent years, but this does not detract from the fact that it is possible to select companies in the market with unexpressed growth potential. The most interesting sectors at this stage are MedTech, cybersecurity, healthcare and cloud computing. This is in a nutshell the scenario outlined by Pierre Mouton, Head of Equity Long-Only Strategies at Ns Partners
After a first term characterised by pro-business policies, what are the prospects for the US stock market with Trump's return?
After a first term characterised by business-friendly policies, Trump's re-election could renew initiatives such as tax cuts and deregulation, measures that have historically favoured companies. However, current valuations seem excessive for the market-capitalisation-weighted S&P 500 (and the Msci World, which includes more than 70 per cent US equities), but not for the S&P 500 Equal Weight, which has reasonable multiples in line with history. This indicates that the average stock is not overvalued and there is a real possibility that the S&P 500 Equal Weight will outperform the capitalisation-weighted index, offering excellent opportunities for stock picking.
What are the repercussions for European and Asian stock markets?
European markets are facing structural challenges, including slow GDP growth, higher energy costs than other countries, and weakness in the automotive sector. In Asia, particularly in China, the economy is under pressure from slowing growth, difficulties in the real estate sector and export risks due to tariffs.
Do you think Trump's inflationary policies will influence the decisions of the Federal Reserve, which began its interest rate reduction programme last September?
Trump's fiscal expansion policies could fuel inflationary pressures, but the Federal Reserve is likely to proceed cautiously, forecasting a possible higher neutral rate.
And what could be the possible moves by other central banks?
Conversely, other central banks, such as the ECB, may move more quickly to reduce interest rates due to slower economic growth in Europe, although inflationary risks stemming from geopolitical tensions may complicate their decisions.
