Natixis’ Lafferty: Valuations More Compelling in Europe

The transcript discusses the French election's impact on markets, highlighting the potential effects of candidate Bayrou not running and Le Pen's influence. It examines economic data from Europe and the US, noting improving conditions and market trends. The discussion compares market valuations between Europe and the US, emphasizing differences in profitability and risks. Finally, it explores the value of sovereign versus corporate bonds, with a preference for corporate bonds due to better returns and tighter credit spreads.

What was the concern regarding Bayrou's potential candidacy in the French election?

• He would support the US dollar.

• He would increase market volatility.

• He would take votes from Macron.

• He would strengthen Le Pen's position.

Why is the US showing interest in the French elections?

• To support the strengthening dollar.

• Because of its implications for European equity markets.

• Due to its impact on US politics.

• To improve US economic growth rates.

What is the non-consensus view regarding global equity portfolios?

• Favoring the US over Europe.

• Leaning towards Europe due to compelling valuations.

• Focusing solely on Asian markets.

• Avoiding both US and European markets.

How do European businesses typically compare to US businesses in terms of profitability?

• They have no profitability.

• They are less profitable.

• They are equally profitable.

• They are more profitable.

What is the preference in the bond market as of 2017?

• Only securitized loans.

• Only high-yield bonds.

• Sovereign bonds over corporate bonds.

• Corporate bonds over sovereign bonds.