Investor Account Access
Investor access to Shareowner accounts and Closed End Funds accounts.
Looking Beyond a Top-Heavy Market: Four Areas for the Future
Wednesday 04 December 2024
Investment Talks
Looking Beyond a Top-Heavy Market: Four Areas for the Future
November 2024 | Underneath the surface of today’s concentrated US equities market, sharp earnings recoveries may soon play out and structural and cyclical changes may create new winning and losing stocks. Although the market is mostly ignoring the valuation risks, we have seen signs that this market imbalance may be ready to unwind. Notably, a higher-than-average amount of S&P 500 returns is explained by company-specific factors rather than macro factors, and valuation dispersion is also high. For active managers, the key is not just to identify pockets of value, but paths to future value through revenue and earnings growth.
01 | Over the past two years, we saw a small portion of the US equities market, including the Magnificent Seven, dominate returns.
02 | This dominance is beginning to equalize as earnings growth from the top stocks slows and the rest of the market accelerates, a process we expect to continue into 2025.
03 | Meaningful structural changes are occurring across many industries, presenting active investors a range of potential opportunities across several key areas. Impacts from the recent US presidential election could also catalyze these shifts.
Important Information
Unless otherwise stated, all information contained in this document is from Amundi Asset Management as of November 25, 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 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 or service. 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 indicative of future results. Amundi US is the US business of Amundi Asset Management.
RO ID# XXXXXXX
©2024 Amundi Asset Management
Other news
03/10/2025
Investment Talks
Municipal Market Outlook
Unlike the US Treasury curve, the tax-exempt curve remains significantly positively sloped, leading to elevated yields in core and longer-duration municipal strategies. The high yield municipal market, in our view, displays a potential opportunity to provide not only tax-efficient dividends, but also pockets of price appreciation found in select sectors and security themes. In general, we expect credit stability in 2025, with potential policy shifts creating both credit negatives and positives. Some of these policy impacts may be felt in port issuers: broadly applied tariffs could impact bottom lines; hands-off energy policy could benefit traditional energy-producing local agencies and states; and Medicaid and Medicare reimbursement eligibility rate shifts could negatively impact smaller regional health care systems.
02/28/2025
Investment Talks
Forming coalition will be easiest of next German chancellor's many challenges
Given the tensions that brought down the last German government, which was a three-party coalition, preference will be given to a two-party coalition to limit the amount of compromise necessary. The most likely coalition is between the CDU/CSU and the SPD. The German economy, which was in recession for the second year running in 2024, is the weakest economy in the eurozone. Tightening financial conditions, rising energy prices and weakening foreign demand (particularly from China) explain the poor economic performance. Uncertainty over tariffs has been weighing on confidence and domestic demand since the start of the year.
01/10/2025
Investment Talks
January 2025 US High Yield Market Outlook & Positioning
Although full year 2024 returns for High Yield were strong and spreads tightened during the fourth quarter, fourth quarter returns were weak with losses in both October and December due to yield curve headwinds. While defaults have moderated over the last few months, Moody’s recently increased its year-end global speculative grade default by issuer forecast to 4.6% on weaker US employment. Moody’s also projects the global default rate by issuer count to decline steadily across 2025, reaching 2.7% by next November.
Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our literature section.
Securities offered through Amundi Distributor US, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer mutual funds, Member
SIPC.
Not FDIC insured | May lose value | No bank guarantee Amundi Asset Management US, Inc. Form CRS Amundi Distributor US, Inc. Form CRS