Five risks, three big-picture themes, and six debates – those are the contents of the latest presentation by Société Générale strategists Paul Jackson and Alain Kayayan.
The presentation provides a tight, yet comprehensive snapshot of the conversation in markets right now. Stocks are expected to outperform other asset classes, and the general view is starting to coalesce around the idea that the big negative “tail risks” are receding.
However, investors need to take a realistic assessment of those risks – and if they can be mitigated, then the question becomes where to invest.
Jackson and Kayayan provide a few ideas.
Note: Thanks to Société Générale for allowing us to feature this presentation.
Earnings estimates on tech hardware stocks have risen while the stock price has lagged. Vice-versa for semiconductor stocks
Sectors to the left of the chart below must produce more growth than those on the right to justify current valuations
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