Laurent Denize, Global Co-CIO ODDO BHF.

"The summit remains within reach, but the clouds are growing darker"

While the Trump show — full of announcements, funds have generated zero net inflows over the last threats and internet memes — did not take a summer break, most investors were still able to enjoy a relaxing holiday. The stock markets have clearly learned to live with the chaos of the Trump era. Is this carelessness, or have investors now developed the ability to filter out irrelevant noise and focus on signals relevant to their investments? After all, the markets never take a break. Those who want to achieve long-term return targets must seize investment opportunities, even in risky times. As with mountaineering, it is important not to look down, but to keep climbing to reach the summit. However, in view of high valuations, it is a good idea to secure yourself for the further ascent.

The US market cannot be ignored

Since the market slump triggered by the tariff announcements in April, stock markets have shown a strong recovery. This rally has particularly affected US technology stocks, while the upturn in the eurozone stock market lost some momentum after the price gains in the first quarter. Investors have once again turned their attention to momentum stocks, and to a lesser extent to growth (US) and value (Europe) stocks, which are strongly represented in the respective indices. To date, the big rotation from the US to Europe remains wishful thinking expressed by some commentators. Yes, a tentative shift began at the start of the year, but it is still in its early stages (at best), and the harsh reality of the figures is that European equity five years. Thus, if they want to become as attractive to investors as the US, European capital markets will have a lot of catching up to do. Alongside the efficient implementation of the announced German infrastructure programs, greater integration of the capital markets would also be necessary. Until then, US equities will remain indispensable for investors. After all, at USD 4500bn, Nvidia 's market capitalization is equal to the sum of Germany's and France's leading stock indices.