Latest news with #GeorgeEfstathopoulos
Yahoo
13 hours ago
- Business
- Yahoo
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
(Bloomberg) -- Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago. 'The worst of the shock is behind us with Liberation Day,' said Efstathopoulos, referring to the April 2 US tariff announcement that triggered a global equity rout. 'The numbers that were recorded on that day were the worst it can get.' Fidelity is maintaining its conviction even as investors gear up for the end of the 90-day tariff truce on July 8, when reciprocal levies will take effect if nations fail to reach a trade deal with the US. Tensions in the Middle East may also pose a major test for stock markets, with Trump to decide within two weeks whether to strike Iran as the conflict with Israel escalates. For now, many of Efstathopoulos' bets have paid off, and he's convinced they remain a buy. The MSCI Japan Mid Cap Index has gained more than 4% since April 2, while Germany's DAX Mid-Cap gauge has risen almost 6%. A similar index of Chinese stocks advanced about 0.5% during that period. The money manager has had some exposure to Chinese and Japanese stocks since the second half of last year, while it scooped up German midcaps in March shortly after the government announced a historic spending package. 'In a world of trade disruption, disruption of globalization, I think it makes sense to focus on more domestic revenue generation,' said Efstathopoulos, who oversees about $3 billion from Singapore. German equities should advance because they're poised to benefit from a landmark shift toward more fiscal spending and concentrated exposure to domestic demand, he said. Meanwhile, Japan is undergoing a once-in-a-generation shift with 'good inflation' rippling across the economy, and mid-sized companies are likely to benefit most from rising domestic consumption, said Efstathopoulos. Fidelity likes Chinese firms due to prospects of further fiscal stimulus and limited risk of losses, thanks in part to factors like state-backed investors swooping into markets to prop up stock prices. Efstathopoulos helps oversee Fidelity's global multi-asset growth and income fund that's returned a cumulative 11% over the past five years to May, according to a company factsheet. RBI's Liquidity Boost to Propel Indian Small Caps: Taking Stock Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Business
- Yahoo
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
(Bloomberg) -- Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago. 'The worst of the shock is behind us with Liberation Day,' said Efstathopoulos, referring to the April 2 US tariff announcement that triggered a global equity rout. 'The numbers that were recorded on that day were the worst it can get.' Fidelity is maintaining its conviction even as investors gear up for the end of the 90-day tariff truce on July 8, when reciprocal levies will take effect if nations fail to reach a trade deal with the US. Tensions in the Middle East may also pose a major test for stock markets, with Trump to decide within two weeks whether to strike Iran as the conflict with Israel escalates. For now, many of Efstathopoulos' bets have paid off, and he's convinced they remain a buy. The MSCI Japan Mid Cap Index has gained more than 4% since April 2, while Germany's DAX Mid-Cap gauge has risen almost 6%. A similar index of Chinese stocks advanced about 0.5% during that period. The money manager has had some exposure to Chinese and Japanese stocks since the second half of last year, while it scooped up German midcaps in March shortly after the government announced a historic spending package. 'In a world of trade disruption, disruption of globalization, I think it makes sense to focus on more domestic revenue generation,' said Efstathopoulos, who oversees about $3 billion from Singapore. German equities should advance because they're poised to benefit from a landmark shift toward more fiscal spending and concentrated exposure to domestic demand, he said. Meanwhile, Japan is undergoing a once-in-a-generation shift with 'good inflation' rippling across the economy, and mid-sized companies are likely to benefit most from rising domestic consumption, said Efstathopoulos. Fidelity likes Chinese firms due to prospects of further fiscal stimulus and limited risk of losses, thanks in part to factors like state-backed investors swooping into markets to prop up stock prices. Efstathopoulos helps oversee Fidelity's global multi-asset growth and income fund that's returned a cumulative 11% over the past five years to May, according to a company factsheet. RBI's Liquidity Boost to Propel Indian Small Caps: Taking Stock Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
13 hours ago
- Business
- Bloomberg
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago.
Yahoo
03-03-2025
- Business
- Yahoo
A Trader's Guide for China's Closely Watched Policy Meeting
(Bloomberg) -- Chinese stock investors face a pivotal week as top officials meet to discuss economic priorities, with hopes running high for further stimulus to sustain this year's blistering rally. Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty Remembering the Landscape Architect Who Embraced the City NYC Office Buildings See Resurgence as Investors Pile Into Bonds Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park NJ Transit to Deploy Customer-Service Teams After Record Delays Markets will be focused on how Beijing can offset the risk of US tariffs after President Donald Trump threatened another 10% levy. A ramp-up in fiscal spending is expected to be announced at the National People's Congress to bolster domestic demand, as well as measures to defuse a property crisis and put an end to the deflationary spiral. Efforts to spur technological advancements — ones that could see the likes of AI start up DeepSeek spring up — will also be crucial. Optimism over artificial intelligence has led Chinese tech stocks in Hong Kong to a three-year high, raising the risk of a sudden selloff if Beijing's push for innovation disappoints. 'Higher government spending driven by fiscal deficit expansion and rebounding credit impulse would help alleviate deflationary concerns and add to the ongoing China equity market re-rating,' said George Efstathopoulos, a portfolio manager at Fidelity International. China holds the keys to 'rebalance its economy and create more sustainable growth domestically.' Here are some of the areas closely watched by equity traders and analysts ahead of the meeting that kicks off on Wednesday: AI Race The extent of China's support for AI and other cutting-edge technology will be of major interest after DeepSeek triggered a valuation re-rating of the sector. Investors are expecting measures to 'push forward the AI-related investment and adoption,' according to Goldman Sachs Group Inc. economists. President Xi Jinping's embrace of major business chiefs — who had once laid low during a regulatory crackdown — suggests the nation will double down on its drive to achieve tech supremacy. Beyond AI, robotics, low-altitude and digital economy sectors may be of focus. Potential equity market winners include chipmakers such as Hua Hong Semiconductor Ltd., whose shares have risen about 58% in Hong Kong this year. Robotics firms UBTech Robotics Corp. and Shenzhen Inovance Technology Co. have gained more than 60% and 20% each during the period. A further pledge in support for the private sector will benefit China's top two internet giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd., which have roared back after years of sluggish market performance. Consumer Demand Analysts expect that boosting consumption will be a policy priority this year given deflation and trade tensions. Premier Li Qiang recently emphasized the need to shore up consumption as a key driver of growth. 'We need quite expansionary fiscal policy to help circuit break the disinflationary spiral in China and to help inject some demand impetus to the economy,' said Kinger Lau, chief China equity strategist at Goldman Sachs. 'The government has talked about supporting consumption, but we need the details.' Citigroup Inc. analysts see a possible expansion of the trade-in program, which has benefited makers of consumer electronics and measures to increase basic pension benefits. They don't expect a large-scale child birth subsidy or a universal cash handout, according to a Feb. 14 note. Policies to revive domestic demand can be a boon for automakers such as BYD Co. and Geely Automobile Holdings Ltd., and home appliance makers including Gree Electric Appliances Inc. and Haier Smart Home Co. Increased support may allow a catch-up rally in onshore Chinese shares, where consumption-driven stocks have a heavier presence. Property Slump Details around supporting the housing market will be important as the industry remains soft despite early signs of stabilization. A gauge of property stocks are down 40% from an October high as investor patience wanes. With the property sector accounting for about 19% of the economy, concerns around the still-sluggish housing market may prevent the stock rally from broadening beyond tech shares. The Congress is likely to focus on measures to push forward urban village renovation, support housing demand, reasonably control new land supply while seeking more progress in inventory de-stocking, according to a note by UBG Group AG. Tao Wang, chief China economist at UBS, expects the government to deploy 800 billion yuan ($110 billion) or more of special local government bonds each year for de-stocking, and add credit support for developers' financing. Support measures would likely benefit larger state-backed firms including China Vanke Co., China Overseas Land & Investment Ltd. and China Resources Land Ltd. --With assistance from Zhu Lin. Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Trump's SALT Tax Promise Hinges on an Obscure Loophole Walmart Wants to Be Something for Everyone in a Divided America Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience OXO Fought Back Against the Black Spatula Panic. People Defected Anyway ©2025 Bloomberg L.P. Sign in to access your portfolio
