Asset Allocation

The expected returns on US value stocks are attractive compared to growth stocks. As a coronavirus vaccine is now around the corner, the global economy will pick up next year. This will be supportive for long-term outperformance of value stocks, according tot Christian Correa, President and Chief Investment Officer of Franklin Mutual Series.

Many people will continue to work partly from home until after the pandemic is over. This reduces demand for office space. At the same time, however, the function of offices is changing. This means office space will continue to be in demand, and mainly at prime locations, says Richard Gwilliam, head of property research at M&G Real Estate.

The price of an average house in Luxembourg has now risen well above €1m, making the Grand Duchy Europe’s second-most expensive housing market after Monaco. The regulators have just announced plans to impose tough minimum deposit requirements on new housing loans. Are these signs of speculative exuberance and is there a risk to the banking sector? Should investors be worried?

It’s outlook time: asset manager are presenting their investment outlooks for 2021. Lombard Odier’s Chief Investment Officer Stéphane Monier (photo) makes it concrete by listing the institution’s 10 most important investment convictions and ideas for next year. Emerging markets get an important place, but hedging risks remains important too.

A solution must be found at the European level to deal with the costs of extreme health risks such as a pandemic. This can be done by launching bond-like products that can be sold to institutional investors.

‘It’s a good time to be a bit more bullish again,’ says Jeroen Blokland, head of Robeco’s multi-asset team. Especially for equities and commodities, the asset manager is counting on double-digit returns.

The dollar will depreciate by another 10-15% over the next 3 to 5 years as the election of Joe Biden as the 46th president of the United States has drastically reduced the risk of a trade war, according to currency strategist Aaron Hurd of State Street Global Advisors.

Oil stocks have never been so cheap, but there are no signs yet that prices have bottomed out. We’re still waiting for a turn in market sentiment, say head of Automated Intelligence Equity Tjeerd van Cappelle at NN Investment Partners and NN Energy fund manager Anastasia Naymushina (photo).

The American exceptionalism will finally make way for outperformance of European and EM equities, according to JP Morgan AM’s annual long-term capital market assumptions.

In recent years it has been impossible for global equity funds to beat the index without a substantial allocation to the FAMANG stocks. But the Global Disruptive Opportunities fund of CPR AM, a boutique of Amundi, has done it. We asked fund manager Wesley Lebeau how.