Adobe Stock – Figaro Patrimoine et Bourse
Macroeconomics, monetary policy, market phenomena: every week, Le Figaro Patrimoine et Bourse offers insights from a finance professional.
What analyst hasn’t a positive view on small caps? Historically, small caps have outperformed large caps, but this has not been the case for many years. The American investment bank Goldman Sachs notes that, to date, 2024 is no exception, across all regions.
And if in Europe small caps have underperformed the large caps by only 4% since then, this is mainly because Granolasthe “mega-caps” of the Old Continent, “have lost 7% since their peak in early September“, comments strategist Lilia Peytavin. Indeed, “the macroeconomic environment is not particularly favorable to European small caps“.
These 3 factors weigh heavily
Firstly, despite the ECB, “bond yields remain high“and that “50% of small-cap debt is at variable rates“. Secondly, sluggish growth on the Old Continent weighs heavily on small caps, which are more cyclical and manufacturing-intensive than others.
Finally, “we feel quite counter-intuitively that the…