Convictions

Seek resilience in equities

Explore equity opportunities during uncertain times, and where to position in a more favorable environment

A sailboat with the rudder in close-up and the sea horizon in the distance.

Historically, when the Fed rates plateau, equity has risen only if there was no recession ahead, or in case of a strong disconnect between valuations and earnings potential. Otherwise, with these premises and after some resistance, the scenario for equities tends to become more challenging. Considering our expectations of a mild recession and the overvaluations of a number of stocks in the US, we favour a more balanced profile entering 2024, and potentially review this position only after Fed’s cuts announcements.

We maintain a selective approach and explore value, quality, dividend-oriented names in developed and emerging markets.

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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of end of January 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 2 February 2024

Doc ID: 3368819

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