In our latest CIO Viewpoint on equities, we comment on the latest equity market developments and explain why we like the idea of a "Barbell" approach that combines Mega Tech stocks with European Small Caps. Moreover, we provide a short Q2 2024 earnings season preview.

Key takeaways:

  • Equities remain the most convenient way to capitalise on AI-driven technological progress. Mega Cap Tech valuations are not yet historically at bubble levels.
  • European Small Caps may now start to perform better. A “Barbell” approach, combining them with Mega Cap Tech stocks, would have various merits.
  • The U.S. Q2 earnings season kicks off next week. S&P 500 Q2 earnings expectations have risen since the beginning of April, but with marked sectoral divergence.


The CIO Viewpoint below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.



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