1. Newsroom
  2. Gold bleibt unter Druck
Menu
UBP in der Presse 01.04.2021

Gold bleibt unter Druck

Gold bleibt unter Druck

Bilan (31.03.2021) - As vaccines offer a way out of the current crisis, we should see a greater rebound among small and mid-cap companies, the so-called ‘SMID-cap’ segment, than in the broader market.


Allocating to global SMID caps now is worth considering for two reasons. First because the high potential of the asset class usually transpires during recovery periods. History seems to be repeating itself, as global SMID caps have been outpacing other equity segments since the March 2020 drawdown, a pattern that has been observed before – following the dot-com bubble and the global financial crisis.

Additionally, and against a backdrop of depressed earnings for 2020, global SMID caps are offering better earnings leverage and attractive valuations by trading at a much lower P/E ratio than large-cap growth stocks. In the currently expensive market, SMID caps are probably one of the last areas within equities where the balance between fundamentals and pricing remains relatively unscathed.

With the combination of corporate cost-cutting, COVID-19-related stimulus packages and the reopening of global economies, the prospects for SMID-cap businesses look exciting. In order to extract the most potential out of this large ecosystem, investors should select companies that are:

  • Based in developed markets, which offer stability and a diverse array of sector expertise
  • Strongly ‘quality’-oriented, as defined by factors like return on assets and equity, operational and net margins, and long-term debt to capital
  • Highly liquid, within an indicative market-cap range of USD 1–35 billion

Marion Olivier 150 x 150.jpg
Olivier Marion
Senior Investment Specialist
Go to his Linkedin profile.

Expertise

Investing in biodiversity – why and how

UBP is one of the longest-standing investors in hedge funds and a leading European player in the sector.


Auch lesenswert

UBP in der Presse 06.03.2023

An eventful start to the year for equity markets

Bilan (22.02.2023) - After 2022 brought an 18% fall in the MSCI AC World index, global markets began 2023 with a rally spanning various asset classes.

UBP in der Presse 03.03.2023

Higher volatility sparks hedge fund comeback

Bilan - Pierre Novello (27.02.2023) - In 2022, after a lost decade, hedge funds once again saw the turbulent conditions that suit them so well.

UBP in der Presse 22.02.2023

UBP CEO: The skills private bankers need to survive in 2023

Asian Private Banker (17.02.2023) - Decades ago, private bankers could survive with a limited investment skill set and a good network, but today they have to master several layers of expertise on top of relationship management skills, Guy de Picciotto has observed.