SocGen's Kaloyan Says 'Avoid U.S. Small Caps'

The video discusses global trade tensions, particularly between Europe, China, and the US, and their impact on equity markets. It highlights the importance of strategic stock selection in Europe, favoring domestic sectors and small caps less exposed to trade tariffs. The video also covers expectations for the euro and global markets, suggesting a focus on defensive sectors like healthcare and pharmaceuticals. It concludes with a forecast for the US market, noting potential downside risks and differences in small cap performance between the US and Europe.

What is the main focus of the upcoming meeting between the President of the European Commission and President Trump?

• Discussing climate change policies

• Addressing trade tensions

• Planning a joint military exercise

• Negotiating a new travel agreement

Which sectors are considered less exposed to trade tensions in Europe?

• Automotive industry

• Large-cap technology

• Domestic sectors and small to mid-caps

• Luxury goods

What is the expected impact of changes in monetary policy on the FX market?

• Weaker euro

• Stronger euro

• Stable euro

• No impact on the euro

Which defensive sector is highlighted as having strong balance sheets in Europe?

• Technology

• Pharmaceuticals

• Automotive

• Real estate

What is the forecast for the S&P 500 by the end of the year according to Roland?

• 3000

• 2950

• 2800

• 2500

Why are European small caps preferred over U.S. small caps?

• Stronger balance sheets in Europe

• Higher gearing in Europe

• Better growth prospects in the U.S.

• Lower currency risk in the U.S.

What is a potential downside risk for the U.S. equity markets by the end of the year?

• Increased consumer spending

• Policy uncertainty and midterm elections

• Strong U.S. dollar

• Stable interest rates