Stock market: Europe in search of a second wind

Posted on Dec. 2020 at 12:25

Can the European stock markets still go up? The question divides investment professionals after the historic rebound in the markets in November. For some, the rotation that has started with the arrival of the Covid vaccines to the detriment of growth stocks such as tech is only in its early stages. The recovery in activity next year should primarily benefit the “old economy”, still dominant in European stock market indices, and other discounted stocks, also called “value”, such as transport and leisure. .

“We are at the start of a cycle, the current rebound movement in ‘value’ values ​​should continue”, insists Eric Mijot d’Amundi. “They have accumulated a significant delay in recent years that they have just started to catch up”, he adds. Investors have in fact disdained these stocks since the financial crisis of 2008. Between 2009 and today, the MSCI Value Europe index has risen by around 30 points, against a jump of more than 160 points for the MSCI Growth index. Europe.

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