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In a recent address at the Carmignac Summerlounge in Munich, Gergely Majoros, a member of the Investment Committee at Carmignac, discussed the current investment landscape and highlighted Europe as a promising destination for investors seeking diversification.
Majoros's remarks came at a time when many market participants view rising inflation rates as the biggest risk to capital markets. However, Majoros sees this trend as primarily short-term.
The event marked the first live gathering for the Carmignac teams from Frankfurt and Paris since the coronavirus pandemic, and it attracted a significant number of investors with an interest in emerging markets and China.
One of the sectors that Majoros finds particularly interesting is technology, where he sees many promising developments in Europe. He also emphasised the potential in health and consumption sectors, as well as sustainable energy and value stocks. Majoros often cites Europe's rebound in economic growth, attractive valuations, and ESG (Environmental, Social, Governance) focus as reasons for this optimism.
Europe, he argues, offers a stable political framework, innovation hubs, and ongoing corporate reforms, making it an appealing alternative for investors seeking diversification.
Majoros also advised avoiding short-term duration risks in the US bond market and sees attractive opportunities in corporate or emerging market bonds, particularly in sectors like tourism or commodities.
During his address, Majoros also touched upon the global economic recovery, which he described as running extremely heterogeneously. He noted that while the Chinese economy has already recovered from the crisis last year, it is gradually entering a slowdown phase.
In light of this slowdown, Majoros expects growth stocks to perform better than cyclicals and value stocks in the coming months. He also mentioned that currency volatility can be a significant source of volatility in global portfolios, often underestimated.
Majoros had selling positions on US bonds at the beginning of the year, expecting yields to rise, but later shifted these positions to Europe due to anticipated catch-up effects. He also stressed the importance of diversification, pointing out that Europe offers interesting companies in areas such as health, technology, consumption, luxury goods, industry, and climate change.
In contrast to many global multi-asset or equity funds that have tech giants like Amazon, Microsoft, and Apple among their top positions, Europe offers a chance to diversify with lesser-known but promising companies. Carmignac's experts avoid investing in large corporations like Alibaba and Tencent and instead focus on second-tier companies in China.
Bonds can still be exciting and contribute to investment success even in a low-interest environment, according to Majoros. He also noted that the equity share of Carmignac Patrimoine, the flagship fund, has been reduced from 45 percent to 35 percent, with liquidity increased to over 20 percent.
Despite the ongoing economic uncertainties, Majoros remains optimistic about the investment opportunities in Europe. He emphasised the need for careful consideration and a long-term perspective when making investment decisions.
For the most precise and current views attributed directly to Gergely Majoros, it is advised to consult the latest Carmignac releases, interviews, or official investment committee reports, since the search results used in this article do not provide this specific information.
Other businesses in Europe, such as technology, health, consumption, sustainable energy, and value stocks, are promising destinations for investors seeking diversification, according to Gergely Majoros, a member of the Investment Committee at Carmignac. In contrast to many global equity funds, Europe offers a chance to diversify with lesser-known but promising companies, and the finance sector sees opportunities in corporate or emerging market bonds, particularly in sectors like tourism or commodities.
