Robeco's March Newsletter
Financial firms are set to benefit from tailwinds that include fintech and M&A, and stock picking remains vital to find the winners, our monthly outlook says. This month we assess the likely outcome of China's 'Two Sessions' policy meetings for trade, outline why we're staying on course for net zero, and discuss why you AI'nt seen nothing yet when it comes to the impact of artificial intelligence on trends.
Banking on Financials to beat the market
Financial companies are set to benefit from a wave of tailwinds, though stock picking is essential to find the best opportunities, Robeco’s active investors say.
- Banks have the second-best earnings growth behind Big Tech
- Fintech and an M&A consolidation wave set to benefit the sector
- Cuts to regulation and red tape likely to benefit the US vs. Europe
All eyes on China's 'Two Sessions'
Execution of fiscal expansion and a future trade settlement with the US will be the focus for investors in the first half of 2025 with China’s ‘Two Sessions’ meeting likely to reconfirm that policy will promote growth.
- Trade fire now ablaze after US announces extra 10% tariffs
- Tech has momentum, but support for consumption and property still required
- Xi meeting with private sector leaders has set a more dynamic tone
The effect of higher index concentration
Our quant experts zoom in on what the mega-cap dominance of the Magnificent Seven tech stocks means for active investors.
Return on Invested Capital (ROIC) is a popular profitability metric used to assess if a company is creating value with its investments. In principle, a company creates economic value when its ROIC exceeds its Weighted Average Cost of Capital (WACC).
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Staying on course for net zero
Our new SI Debate column argues that investors are still firmly committed to net zero, despite an exodus from net-zero alliances.
- US Congress letter caused Net Zero AM Initiative to suspend its work
- Investors can develop solutions but governments must pave the road
- Most learning curves result in disillusionment before enlightenment
Why quant investing is not a 'black box'
Quant investing has been called a ‘black box,’ but is that really the case? In the first of this new series on Quant Investing we sit down with Harald Lohre, Director of Quant Research at Robeco, to break down this myth.
You AI-nt seen nothing yet
AI has shaken up the investment world, generating impressive stock-market gains for the perceived winners. Is the market now starting to move beyond its obsession with the usual suspects in the AI race? Portfolio managers Jack Neele and Daniel Ernst discuss how they’re dealing with these questions.