INCORPORATING QUANT SIGNALS INTO EU EQUITY SECTOR AND STYLE STRATEGY

At the end of 2019 we published the Focal Point “Quant signals for EU equity sectors and styles” where we introduced our proprietary equity valuation tool to yield indications of over- or undervaluation for different sectors and styles of European equities.

Highlights:

  • We present an update of our proprietary equity valuation tool, based on quant models, which provides indications of over- or undervaluation for different sectors and styles of European equities.
  • Currently, among European equity sectors, financials, industrials, energy, staples and automobiles look undervalued while health care, utilities, materials and software appear overvalued.
  • Among European equity styles, undervaluation is indicated for large cap value and small cap while growth, value, quality, momentum, large cap and small cap growth look expensive.
  • That said, incorporating non-quant signals from our analyses, we recommend to overweight insurance, div. financials, media, telecoms and capital goods. Underweight durables, transportation, real estate, commercial & professional services and momentum.

Download the full publication below

INCORPORATING QUANT SIGNALS INTO EU EQUITY SECTOR AND STYLE STRATEGY

RELATED INSIGHTS

COVID-19 FACTS & FIGURES
US President-elect Joe Biden has unveiled a $1.9 trillion stimulus package proposal. Following the recent increase in cases, China has imposed new restrictions and lockdowns in the Hebei province. Canada has implemented new restrictions and a provincewide curfew in Quebec that will last until February 8. German Chancellor Angela Merkel warned that the recent rise in Covid-19 cases could force the country to prolong the nationwide lockdown until April.
Video Outlook 2021: Repair and Despair
Watch the Outlook video with Vincent Chaigneau, Head of Research at Generali Investments
US: Fiscal stimulus to boost GDP growth to 5.5% in 2021
The thin majority in the Senate will allow the incoming administration to deliver quickly a sizeable fiscal stimulus. We expect a package worth around US$ 800bn (on top of the US$ 900bn already agreed on in December), centred on the strengthening of direct income support to households, extended unemployment benefit and aid to local governments.