Amundi maintains confidence in US equities but focusing on small caps, a segment of companies that can be seen most favored by the protectionist policies of the new Donald Trump governmentafter the maximums reached by the indices of the largest capitalization firms. But even in these indices, the French manager is betting on those that balance the weight of all its components, to eliminate the bias of the Magnificent Seven in its revaluation.
In fact, Víctor de la Morena, investment director of Amundi Iberia, explained this Monday in the firm’s outlook presentation that the PER of the S&P 500 Equal Weight Index is below 18 timesin the historical average. “There are opportunities in the North American market but we must avoid large technological values, because they are the ones that raise the PER to 22.5 times,” he noted.
Within variable income, they prefer to have a bias to value and qualityand by sector they are betting more on the financial sector, utilitiescommunication services and discretionary consumption.
The manager foresees global growth of 3% for the next two years, supported mainly by emerging markets, which is why it recommends having a diversified exposure, especially in Asia, “a key area” for Amundiaccording to De la Morena.
Despite the fear of the tariff policy that Trump may implement, the manager remembers that China has stopped being the factory of the West and has been able to strengthen intraregional trade ties with the countries around it. Within emerging markets, India and Indonesia are the countries that offer the best long-term prospects.
As for China, De la Morena assured that it represents a constant “headache” and recognizes that they were wrong with the post-Covid optimism and with the digestion of the real estate crisis. But, “as soon as the economy is reactivated, its potential will resurface.”
In fixed income, the manager also recommends emerging market bonds.
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