In 2017

Amundi Will Reduce Positions In The US Market and Increase Its Weight in European and Emerging Markets

Date:

Amundi Will Reduce Positions In The US Market and Increase Its Weight in European and Emerging Markets

Author: Alicia Miguel Serrano

  1. Following the elections, the US market became more expensive and we decided not to be short because the momentum was there, but now we can say that is creating a bubble
  2. In European equities, valuations are more attractive, there is greater profit growth potential and dividends are the highest in the developed world
  3. In European shares, it expects a 10% growth in profits which, combined with dividend yields of 4%, lead Amundi to predict "very decent returns"
  4. About Brexit: "The consequences for Europe and the UK will be greater than expected, and the probability that the UK gets everything it wants is nul
  5. In emerging stock markets, its committed to markets with good internal growth stories, such as India, Philippines, Russia or Peru; in bonds, its favorite market in local currency is Latin America, although its commitment of conviction is by the debt in hard currency
  6. "Trump will not necessarily be negative for emerging markets: only if there is a combination of strong protectionism, while at the same time the Fed raises rates very aggressively, will there be an impact, but it is unlikely that both events coincide"