Highlights

  • The economic impact of the coronavirus could blur cyclical signals for a few weeks, but the ongoing industrial stabilization should remain in place.
  • The valuation of growth stocks is on an upward trajectory that raise fears of bubble, especially in relation to the cheap value universe. Relative to bond yields, however, even high P/E stocks remain attractive.
  • Neither investor surveys nor the recent poor performance of cyclical stocks indicate any euphoria about the economic cycle. On the contrary, defensive stocks have recently outperformed.
  • The two emblematic value sectors of the euro zone, the automobile and the banks, have recently given back a part of their market performance of Q4 2019. Activity in these sectors is however on a clear recovery path.
DORVAL ASSET MANAGEMENT, is a public limited company with share capital of €303,025.00, having its registered office at 1 rue de Gramont, 75002 PARIS.
Dorval Asset Management, recorded under no. 391 392 768 on the Paris Trade and Companies Register, is approved as an asset management company by A.M.F. (French financial markets authority) under the number GP93-08. www.dorval-am.com