Our Investment Strategy Recommendations For November

We are now positive on equity markets in both the short and medium term. We believe that caution is no longer necessary as political risks are diminishing (the imminent development of a cease-fire between China and the US, a highly-likely negotiated Brexit deal after the elections) and leading economic indicators are stabilising, pointing to a rebound in economic growth in the second half of 2020. Financial conditions are very favourable to companies: interest rates are low and central banks are pursuing very accommodative monetary policies. Equity markets exceed their February 2018 highs; technical conditions will favour a continued rise.

We turn positive on the UK and emerging markets, which are lagging behind and are cheap. We remain bullish on the United States and the eurozone. In terms of sectors, we are now buyers of European technology, US financials, insurance in both Europe and the United States and European building materials. On the other hand, we downgrade our rating on listed real estate to neutral. In terms of style, we prefer "Value" to "Growth", and small- and mid-caps to large caps. We also move to buy on European convertible bonds.