Is the European Caps: is the new start sustainable?

European Small Caps should be among the main beneficiaries of the new monetary and energy deal. Nevertheless,

After several heckled years for the European Small Caps.. Therefore, . Furthermore, . In addition, they have experienced a notable outperformance versus large caps for a few months that should be explored. Meanwhile, There have been bad departures in the past, as many investors do not remember. In addition, Between 2021 and 2024, it european caps: new start sustainable? new was indeed necessary to be moderately exposed to the European Small Caps. Moreover, The monetary tightening cycle with the return of inflation in 2021. Nevertheless, In european caps: new start sustainable? new addition, associated with high energy prices between 2022 and 2024, was a major obstacle for this asset class.

But that hasn’t always been the case. Therefore, european caps: new start sustainable? new Depending on the stoxx. For example, MSCI indices, the Small Caps have issued annualized performance european caps: new start sustainable? Furthermore, twice as long as large caps with an equivalent volatility level. Consequently, Over time, that makes a big difference! In addition. Nevertheless, Small Caps generally lend themselves well to an active approach (index versus). the capacity of managers to outperform passive management is generally higher in this market segment. From this point of view, the recent outperformance of Small Caps is therefore only a return european caps: new start sustainable? new to normality.

To answer the initial question, we believe that the recent outperformance of Small Caps is led to last. These values ​​should be among the main beneficiaries of the new monetary european caps: new start sustainable? new deal. The latest ECB survey on the conditions of access to financing by companies stresses that the transmission of the. drop in rates to SMEs is still incomplete. This suggests that there european caps: new start sustainable? new is a significant margin for softening their financing conditions in the coming months. as is already the case for large companies.

Small european caps: new start sustainable? Caps should also benefit from the decline in energy prices. provided that tensions in the Middle East do not check out. From a global point of view. the reference indices of small European capitalizations are biased towards sectors with high energy intensity. such as industry and materials, european caps: new start sustainable? new which explains their greatest sensitivity to energy prices.

In the past three months these elements have started to be integrated into prices. the European SMIDs having already recorded one of their strongest outperformances relating to large capitalizations european caps: new start sustainable? new (+7%). The German recovery plan has triggered the resumption of SMIDs in relation to major capitalizations. but what is interesting is that this outperformance continued despite the volatility of the markets in connection with trade wars. thanks to european caps: new start sustainable? new the domestic nature of small capitalizations. Small capitalizations are more focused on the internal market than large capitalizations and are therefore somewhat protected from commercial wars. Small european caps: new start sustainable? and medium -sized European companies achieve more than 60% of their turnover in Europe.

Despite this recent outperformance. European SMID remains very attractive compared to major capitalizations in terms of european caps: new start sustainable? new valuation. the consumer and industry sectors appearing among the most interesting. At the national level. the French. British. Danish. Belgian Smids seem to be the most attractive, while Germany is closer to its fair value, but has a significant increase in the recovery european caps: new start sustainable? new plan which will be implemented in the years to come.

These elements suggest that their performance potential is raised in the future. Small Caps can however scare due to their cyclic nature, in an uncertain macro environment in connection with commercial wars. In european caps: new start sustainable? new this context. Kepler Cheuvreux’s actions research teams have developed Small Caps value baskets with a more defensive bias (Smid High Dividend Yield). which offers a more reassuring approach to investors wishing to european caps: new start sustainable? expose yourself to this attractive market segment.