Hedging against the Tech-AI rally losing steam on Wall Street, large cap global European industry leaders, with poor annual performance and positive trends over the past 1-3 months deserve a closer look
With various alternative time frames - from 1 year down to 15 days - evaluate shifts in market perception and bookmark assets of interest for further inquiry
European stock markets have been a story of missed opportunities - too shallow to insure liquidity, stuck with yesterday's global leaders and entangled in mediocre productivity, as the overview of European markets in the Pininvest Library will show
However, sidestepping investor disaffection, the search of overlooked gems will be beneficial, at a time of stretched valuations on the U.S. markets
- poor valuation against global peers without any clear justification - as for Total Energies
, with a P/E more than 50% below Exxon or Shell - poor valuation by "reflective" effect - as for Airbus Group
, which delivered 40% to 50% more planes (on 23/24 average) than Boeing in 2024 - poor valuation of global consumer firms exposed to geopolitical market uncertainty - such as luxury goods titan LVMH
- poor valuation impacted by American rule setting - as for ASML
, the world leader which stands to loose more than 30% of its revenue with export constraints on advanced semiconductor machinery to China
And the liste goes on ... in aviation, in consumer non-durables, in healthcare, in software applications and in chemical specialties
European Finance, with on average outstanding performance in 2024, has been set aside and exceptionally strong performers, such as Siemens Energy