B · Normal
[Barclays strategists are bearish on European high-quality stocks] On September 8, Barclays strategists turned bearish on European high-quality stocks on the grounds that inflation risks are approaching and earnings stability no longer plays an anchoring role in the market. The team led by Emmanuel Macunga wrote in a research report: "Valuations have only returned to the long-term mean, profitability advantages are narrowing, and we believe that European high-quality stocks lack the support for a sustained rebound." Strategists upgraded low-volatility stocks to a neutral rating, viewing the sector as "a more attractive macro hedging tool." The report points out that interest rates remain the dominant driver of style factor performance.
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