“During the 4-year period of Joe Biden’s mandate, from November 2020 to November 2024, the Eurostoxx 50 outperformed the Dow Jones, despite all the performance of tech”. This is what Léonard Cohen, president and head of management of Ginjer AM, underlined during a press lunch organized in Paris on December 9, 2024. “This situation shows you that you could very well diversify in recent years. years using the European market and purchasing a thematic tech fund.
He emphasizes that on the American market, it is not tech stocks, which were most impacted by the election of Donald Trump, but the Dow Jones. This development illustrates “the conviction that it will revolutionize the American economy; the traditional economy will benefit from it.” “Small caps and mid caps are once again becoming an interesting vector in the United States because confidence is being established whereas it does not exist in Europe for the moment.”
“We are moving towards pro-cyclical budgets, at least in the United States”, and “if you accompany it with interest rate cuts on both sides of the Atlantic”, you are “in a pretty incredible environment on the equity markets”, adds the manager.
“The ecosystem is sorely lacking in diversity,” notes Ginjer AM. “Countries change, sectoral distributions change, styles change, but the behavior of the markets is more or less the same.” For the manager “the devil is in the details” because “even products reputed to be diversified present worrying concentration levels”, “just as certain products reputed to be liquid were able to show recently that they were ultimately not that much.” “.
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