Jeroen Boogaard

European banks are in solid financial shape, and interest income is exceeding expectations. Still, bank analysts are raising eyebrows at the sector’s sharp rally.

Stock prices in the healthcare sector are on the rise. Innovation is driving growth, and investors appreciate the defensive qualities of the sector, experts say.

Mixed funds have been experiencing a strong net outflow of assets for two years. A lower interest rate could reverse the negative trend, but for now, investors show little interest, said Morningstar analyst Thomas De fauw.

European equity ETFs have experienced a strong net inflow this year. Although the market is driven in the short term by news, investors are ready to expand their positions. Both the inflow into financials and that into industrials is noteworthy.

The increased likelihood of natural disasters due to climate change does not make investing in catastrophe bonds (cat bonds) any less attractive. On the contrary, experts say that due to the rising capital needs of reinsurers and higher premiums, returns can actually increase.

Western carmakers have weathered competition from Japanese and South Korean newcomers in the past. Yet, according to investors, not all will survive the current upheaval, as reflected by the depressed valuations of some legacy automakers.

Small-cap stocks have long underperformed their large-cap counterparts, now trading at a discount. For those with a long-term perspective, this could represent a compelling entry point, says Scott Woods, manager of the Columbia Threadneedle Global Smaller Companies fund.

The large-scale investment cycle in data centres currently offers the best investment opportunities for AI investors, says AI fund manager Tobias Rommel.

As after the bursting of the internet bubble at the beginning of this century, there is a danger that growth stock valuations will fall significantly, according to David Cohen, co-fund manager of the Robeco BP US Large Cap Equities fund. 

With a sophisticated dividend strategy, the Goldman Sachs Eurozone Equity Income Fund has been scoring above average for decades. “We spend our risk budget mainly on stock selection and do not deviate much from the benchmark in terms of sector and factor exposure,” said Nicolas Simar of Goldman Sachs Asset Management in an interview.