#Market Strategy — 10.10.2017

Monthly Strategy Video: Stock Markets Need To Take A Breather In The Short Term

Florent Bronès

Watch our Market Strategy video for October:

No change to our main scenario. Fundamentals remain good in terms of moderate, solid and synchronised economic growth in most mature countries in 2017 and 2018. Inflation is showing no real signs of accelerating. Company earnings are still on a good track. We remain positive on risky assets in the medium term.

We believe that the financial markets need to take a breather in the short term because most of the good macro and company earnings news has been priced in; hence our neutral stance on the stock markets in the short term.  Risks persist due to the fragile Trump administration, future monetary policy announcements in the coming weeks and geopolitical issues (e.g. the situation in North Korea and Catalonia). The complaisance and optimism of the markets appear overdone.