Construction, building material stocks would be clear beneficiaries. Defense stocks initial reaction maybe sell off but world not totally safe place - Europe needs to stand on own for defense.
Think Americans should buy Europe in 2026?
Guy
Sharon Bell
They don't want hold everything in dollars and everything in US concentrated in six or seven companies. Europe gives diversification, still much better value than US market.
High labor cost companies underperforming - set to gain from AI technology?
Anna
Sharon Bell
High labor cost companies typically have lower margins, less highly valued. Big beneficiaries if reasonable economic environment with wage growth decelerating and labor-saving technologies like AI and robotics.
Upgraded STOXX 600 target to 625 - what turns you more constructive?
Tom
Sharon Bell
Optimism phase of cycle with earnings growth and re-rating. Macro environment little better with inflation coming down, energy prices coming down.
Can I just park geopolitics? So much of it but don't know what to do.
Guy
Sharon Bell
Market deciding to look through unless clear economic implication. Gold reflecting geopolitical risk with 50+ all-time highs last year.
Every Hambro sees gold miners margins epic - area to buy?
Guy
Sharon Bell
Miners component of FTSE above 10,000. Moved up basic resources to neutral. Difficult to bet strongly against now.
Level of conviction around European small caps?
Tom
Sharon Bell
Reasonably high. All things come together for them: better economic growth, currencies going up, M&A picking up.