Lucy Baldwin, global head of research at Citi, is telling investors to be more selective “under the hood” in US markets. Baldwin says, “think about the broadening thesis in the US, but add if you can, a barbell approach to have some Europe" https://trib.al/EgIg4EA
As a fixed income advisor, I love barbell strategies. But it's true that the fundamentals in Europe at the moment do not look good. ?? Its two largest economies, France and Germany, are leading the downturn. The euro has been in a downward trend versus the dollar since the GFC. ?? The ECB will do what it can, but interest rate cuts will be ineffective if there's no accompanying fiscal effort. We need a credible fiscal plan at the eurozone level, or things risk getting even worse soon. ??
Very informative
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Global Head of Research
3 天前Many thanks for having me Bloomberg Television :)