- European equity value has further to go in this cycle
European equity value has further to go in this cycle
Monday 29 March 2021
Research / Market
Initiated in April based on a cheap quality cyclical stock rebound, the value rotation in Europe has accelerated, favouring deep value names – the segment most impacted by the Covid-19 crisis – in early November, after the announcement of the development of an effective vaccine. Since the beginning of this year, we are in the third stage, led by financials and banks in particular, supported by higher rates and inflation expectations. This means that the rotation is broadening. We continue to be constructive and favour banks with commercial and retail banking exposure that have dominant positions in their domestic markets...
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