Posted on 20 November 2018
As part of our partnership with Savinianne, consultants in wealth management, we are pleased to give you the latest financial news.
2018 might well be a “blank year” but more so on the European financial markets than for French taxes.
In fact, the winning bet would have been to take positions on US hi-tech and European luxury stocks. These stocks were already well priced at the beginning of the year and have gained in value as the months have gone by.
The bumpy period in October fed by commentaries on the US elections should calm down a little once the campaign is over.
European equities, already of inferior value compared to US equivalents will remain so, for as long as the outcome of Brexit remains undecided. Geopolitical tensions over Italy and Turkey pose threats in what is a trade war that has gone beyond just words.
The practical conclusion is to adopt a more conservative asset allocation than that dictated by savers’ risk profile, by carefully selecting investment themes.
Let’s turn now to Northern Europe and take advantage of Scandinavia’s healthy financial situation, facilitated by the price of energy for Norway, and Scandinavian currencies yet to be revalued but likely to catch up shortly, all the more quickly as the situation in Southern Europe becomes more complicated.
10% to 20% gold has been re-introduced as geopolitical coverage due to under-valuation following withdrawing from hedge funds over the last two years.
A large share continues to be devoted to real estate investments within a life insurance framework: for as long as long-term interest rates remain low. Rental income will be supplemented by annual growth in value of existing real estate portfolios.