Lyxor Cross Asset Management: Markets getting high on stimulus
Lyxor Cross Asset Management: Markets getting high on stimulus
Lyxor Asset Management's cross asset research team has released their research and analysis and subsequent investment strategy views for Q3.
The research report comes from Guillaume Lasserre (CIO for Active Investment Strategies), Jean Asseraf-Bitton (Global Head of Market Research) and Senior Strategists Jean-Baptiste Berthon and Philippe Ferreira.
Key points include:
- No room for valuation disappointment
- Abundant liquidity and state subsidies are reflected in changes in earnings multiples compared to pre-crisis levels
- Revised recent IMF estimates showed real GDP contracted by 8% in advanced countries
- Market rally lies with stimulus provide by policymakers
- Risk asset valuations appear rich
- EM to lag DM equities
- Tactically favour EMU equities, supported by ECB's purchases
- Uncompelling Japanese equities, but value in foreign vs. domestic exposed stocks
- O/W Event Driven
- U/W L/S Equity
- O/W China & Russia vs. EM