We are seeing one last pull in the markets, a sign that the end-of-year rally is materializing, although as it is being very progressive and comes after the volatility that we have seen in recent weeks, “it seems that it tastes little”. aim Pablo García from Divacons Alphavalue.
But the S&P 500 is at highs and there are other European indices, such as the CAC 40, which is performing well and even the Ibex 35, which, although it is doing worse than its peers, is also rising in this final stretch. of year.
We also focus on the bond movement, because you are seeing a drop in prices, “it is the logical thing that should happen when inflation is skyrocketing”, and also taking into account that rate hikes are just around the corner, especially in the United States, but possibly also by the ECB.
The 2021 began with optimism, thanks to the arrival of vaccines, but then other factors have weighed in, such as problems in the supply chain and bottleneck, which have weighed down the behavior of some companies. However, business results for the third quarter were “extraordinary,” according to the analyst.
Looking ahead to 2022, it will be necessary to see if the markets they can keep up. From Divacons Alphavalue, they expect a growth of around 6% in business profits in Europe.
Also, the markets that can do well for next year may be Asians. The Nikkei is doing relatively well relative to its peers, while we see declines for example for the Hang Seng, which makes it the cheapest relative rate in the last 25 years with respect to the rest of the international indices. “That is why we are investigating if it can be an area in which to look for this undervaluation.”
Divacons Alphavalue has also presented the balance of one of his portfolios, “Buy & Hold”, which obtained at the end of this Monday a profitability of more than 38%, made up of European securities. “They are quality values”, points out Pablo García.
The securities that are doing better within that portfolio are Roche, Nestle, Dassault Systems, but on the podium of that portfolio are the semiconductor firms, ASML Holdings and ASM International, which “have been two of the fundamental pieces for that pull spectacular that has taken place “, points out Pablo García.