On the stock market, the small and medium-sized French and European values, which have experienced a much less favorable journey than that of the CAC 40 since the breakup of the war in Ukraine, will they finally take their revenge and catch up? Should we buy these actions? © Emmanuel Faure/Getty Images-Paris Stock Exchange (CAC 40, SBF 120 …) safeguard safeguarded receipt of the Bourse since the break-up of the war in Ukraine (in February 2022), on the stock market, small and medium-sized French and European values (stocks of the listed companies of small or average market capitalization, that is to say relatively modest stock market) With regard to CAC 40, which has experienced a much better course over the period. How to explain it? Overview with Louis de Fels, Managing Director of the Gay-Lussac Management Management Company, interviewed by Capital. So the main values (CAC 40, Dax, etc.) are “relatively exposed to the global economy and the American market (which have relatively better resisted in the process of war in Ukraine), small and medium French and European values are relatively more exposed to the domestic economy” (i.e. France and the European economy, Germany having been particularly affected by the benefits of the Russian-Ukraine conflict, especially on gas), which suffered the most from the impact of war in Ukraine, explains the expert. To read also: buy stocks on the stock market, small and medium values have undergone significant outgoing flows, less than on the CAC 40 in the euro zone, “the rise in interest rates (occurred in 2022, in the wake of inflation flight, exacerbated among other things by the benefits of the war in Ukraine, editor’s note) particularly affected the financing of local values (and therefore small and medium values, small and medium values. Editor’s note) ”, also argues Louis de Fels. On the stock market, the small and medium-sized values, “traditionally less agile in times of recession”, have paid the cost of soft economic growth prevailing in Europe in recent years (the German economy having even experienced a long slight recession) and have logically more the subject of outgoing flows (that is to say sales) on the part of investors in shares, underlines the manager. High-tech) and other major values of the rating that have largely enjoyed the massive hopes aroused by the rise of generative artificial intelligence since the end of 2022, the small and medium values, much less exposed to this very promising theme of recent years, have logically underperform towards major values, underlines Louis de Fels. Let us judge: in the space of three years, the Nasdaq 100 flew by 30% (despite the severe recent cloth) and the CAC 40 of 17%, while the equity index of small and medium French values (CAC Mid and Small index) dropped by 11%! On the stock market, the small and medium-sized values have reached excessive discount levels with regard to major values and could try to catch up with their scholarship, early March, small and medium values were historically discussed vis-à-vis the major values, with a 35% discount on the basis of the multiple valuation P/B (market capitalization relating to equity, one of the traditional gauges of action of the degree. Or an even more important discount than that accused during the 2008 crisis. And if we take the PER (Price Earning Ratio, market capitalization relating to the estimated benefits over 12 months), the discount of small and medium values vis-à-vis large values reached 20%, while historically, they benefit from a 20%bonus, due to a more sustained rate of growth (over long period) than Large values, reports Gay Lussac Gestion. Hence the idea that there are currently good entry points on small and medium values, in relative terms, compared to major values. Read also: Stock Exchange: Steps before buying actions Certain catalysts could promote outperformance of small and medium values compared to the CAC 40 in the scholarship, which catalysts could now promote a better route of small and medium values compared to that of the CAC 40? On the front of growth prospects, while the star of the American economy turns out, European growth should take advantage of the German and European investment mega-plans in defense and infrastructure as well as a possible end of the war in Ukraine, argues the management company. However, small and medium -sized values being more exposed to European economic growth (their activities being more local, less international) than major values (CAC 40, Dax, etc.), they should benefit more from the best relative health in Europe. The German recovery plan will dope growth this year but especially in 2026. In the medium term, Gay Lussac Management expects a rebound in European economic growth. A perspective which results in a very strong potential for rebounds of benefits by action of small and medium -sized values. Already, the management company observes that the main values particularly exposed to the American economy (the luxury giants of the CAC 40, etc.) suffer on the stock market (like LVMH action, close to its floors of recent years), while the values very exposed to the European economy (like the French banks of the CAC 40, for example) have clearly failed the game, and should continue to do so. In recent months, Momentum readers, the daily premium investment letter of capital, have been able to make massive gains on the actions of CAC 40 banks (among others), purchased (and sometimes sold) to good timings. By opting for an annual subscription, 5 months are offered. To take advantage of it, simply click on the link inserted below. Receive our latest news each morning, the information to be remembered on the financial markets. (tagstotranslate) Stock market
