Saxo states that US shares, and especially the tech giants, excelled in recent years with excellent returns. The so -called Magnificent Sevenincluding Apple and Nvidia, are now good for no less than 32% of the S&P 500. Their weighting is more than the total European stock market. Strong bets on a limited number of toppers now calls the bank risky, especially in view of the great political uncertainties.
‘Too risky’
She looks back on the enormous price fluctuations in April, in response to Trumps announcements regarding import rates. “If this turbulence has made you very worried, your investment portfolio may be more risky than you can handle. It is now time for a good spread, with a correct balance of growth stocks and investments that limit the impact of future turbulence.”
Out of the US
Saxo advises to invest above average in European shares, partly due to the enormous investment programs in which Germany is at the forefront. According to her, the market is insufficiently praised. The bank also finds Japanese shares attractive, on the one hand because of the relatively low ratings. She also points out that Japanese companies have received more attention to improving profitability and an increase in dividends.
This leading asset manager is gloomy about the American economy and shares
Chinese shares are much cheaper, with about ten times the expected profit for the next twelve months. Saxo therefore also sees upward potential for these shares, but at the same time points to the ongoing political uncertainty and the geopolitical tensions.
According to her, investors are wise to focus primarily on sectors supported by Chinese policy, such as green energy and electric cars.