Axis Tactics 26th February, 2025 - Sector Asset Allocation & Equities with >30% Upside over next 12 Months

US, EU and Global Sector Allocations Chartbook & Equities that have >30% Upside over the coming 12 Months

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Sector Rotation Charts for EMEA, US and Globally

In advance of the Nvidia Earnings Print, scheduled for after the US close tonight, some observations at Sector Level - across EMEA, US and in a Global Context - using RRG Research tools.

Sector Allocation strategy can inform us on where and how to allocate funds, which is especially helpful in a market that is quite highly valued in places.

In the EMEA zone, Utilities, Telecoms, Real Estate & Healthcare are Improving, relative to the rest of the EMEA Stock Market.

Regular readers/viewers will recall that these have been our Sector picks within Europe, for a while now.

Deep in Weakening territory, is Technology. Media & Retail are not far behind.

The US picture also demonstrates good credentials for Healthcare and potential for Utilities to catch up. Consumer Staples’ performance is indicative of a rotation across from Growth to Value. Technology has gone round in a circle, the recent flat performance across the Mag 7 and Chip Sector is a testament to that.

Globally, the layout resonates with EMEA and the US. Consumer Staples and Healthcare are in the ascendancy. Although Energy, in a global setting, is better placed here than it was within the EU and the US - pointing to a healthy Energy investment cycle across Asia and Africa.

Real Estate & Utilities are showing potential to perform well, on a relative basis.

As we noted above in the regional studies, Technology appears to be in an overall spin, which might result in a valuation re-set over the coming 3-6 months - irrespective of what happens later tonight with Nvidia.

For our specific Sector picks, per region, please reach out to your usual contact.

Equities with up to 30% Upside within the next 12 Months

We have curated a list of equities that, according to at least 10 different analysts, have an average upside potential of up to 30%, within the coming 12 months. We have used our own criteria to further narrow down the list according to our own internal investment disciplines : Liquidity, Large Caps, Credit Worthiness, Prudence and Fundamental Valuation.

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