Japan has just announced the name of its new imperial era, an age-old tradition when a new emperor takes over the spiritual leadership of the archipelago of the rising sun. The reign of new emperor Nahurito will be named REIWA, which means “peace and harmony”.

This feeling of harmony left investors somewhat sluggish, as they continued to see investment opportunities in the under-valuation of the European equity markets. It is true that the combined market capitalisations of Amazon and Google equal that of the French equity market. And other comparisons can be drawn. Facebook’s market capitalisation equals that of the Spanish equity market. In brief, Europe is suffering from under-valuation and an obvious lack of appetite. European equities saw their 54th successive week of outflows in the last 56 weeks. The outcome of Brexit could possibly re-inject domestic flows with a degree of dynamism.

But the markets have reached an annual peak, offsetting last year’s losses. Having anticipated a recession, courtesy of overly negative talk from the central banks, the interest rate markets are now back on track for what could potentially be an end to the cycle within two years. That does not stop the market over-paying for IPOs, particularly in the United States with the raising of capital for the stock-market floatation of Lyft, Uber’s small-scale rival.

Peace and harmony is also what Jeff and MacKenzie Bezos managed to find in their divorce settlement, which was causing the financial community to fear for an uncertain future for stock-market giant Amazon. Ultimately, Jeff Bezos retains 75% of their joint holding in the company, whilst his ex-wife receives around $35 million, making her one of the world’s richest women. However, she will be much more alone in a world that continues to be dominated by men, and is still not as wealthy as her ex-husband.

Igor de Maack, Fund manager and spokesperson at DNCA. This article was finalised in April 5th, 2019.

This promotional document is a simplified presentation and does not constitute a subscription offer or an investment recommendation. No part of this document may be reproduced, published or distributed without prior approval from the investment management company.

DNCA Investments is a trademark held by DNCA Finance

DNCA Finance

DNCA Finance

DNCA Finance is an asset management company founded in 2000 by three wealth management specialists on behalf of private and institutional clients.

Over the years, founders have built a skilled and experienced management team to develop a range of simple, understandable and performing funds around 5 areas of expertise : European equities (“long only” and “absolute return”), Diversified management, Convertibles bonds, Eurozone bonds and ISR.

We offer a comprehensive range of products composed of 31 mutual funds French and Luxembourg domiciled (FCP and SICAV) organized in four areas of expertise: Fixed Income, Absolute Return, Diversified, Equities.

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