In the market there are only two important moments: buying and selling.
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Fashion is not synonymous with opportunity.The small investor is often swayed by trends, limiting their purchases to companies that appear in the stock indices and causing the valuation of larger companies to rise. This situation makes other solid and cheaper companies a good investment opportunity.
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The opportunities of the European equity marketMany investors are choosing to invest in high-growth, seemingly more dynamic companies over companies that we might consider to be “dull”, but with stable businesses, more predictable growth and more attractive valuations, primarily in the European market.
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Expensive companies versus cheap companies.Until now, investments were trending towards the most expensive stocks, but this tendency is reversing. The most expensive companies are becoming cheaper (Facebook, Netflix, etc.), while the share prices of the cheapest ones are beginning to recover.
Spread of valuation led by quality and growth
MSCI European Index: Price to book spread between 25 and 75 percent
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The challenge of European stocks.Throughout 2022, global stock markets have fallen sharply, with investors rattled by the FED's plans to hike interest rates. The European market has been practically alone in being able to buck this trend and stay afloat.
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The impact of higher interest rates on tech stocks.In the USA sales have been spearheaded by this type of stock, which have been responsible for driving the market in recent years. However, the prospect of an interest rate hike has encouraged investors to shift from investing in companies with high-growth stocks to favouring cheaper companies.
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Invest in companies of “longer duration”.Companies that are valued by discounting future flows, without profits, with unappealing valuations or with a demanding estimate in the forecast of the increase in their valuations.
Some examples of “value”:
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The pharma sector.Companies with stable income and a strong return on capital.
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So-called “tortoise stocks”.Companies that develop slowly but steadily, such as food retailers or companies specialising in telecommunications.
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Key sectors in the economy.Sectors such as banking or energy stocks.
Investment universe
Our investment proposal focuses on companies that contribute to global urbanisation or that we know benefit from it. Companies that operate in sectors such as mobility, infrastructures or sustainable resource management, mainly highlighting:
- Companies that contribute to a better quality of life in cities through the application of new technologies.
- Companies dedicated to managing the city, building the city and living in the city.
¿Qué opinan los expertos?
- En palabras de Warren Buffet es conveniente invertir en negocios con un horizonte temporal de largo plazo, compañías con ventaja competitiva duradera en el tiempo y con excelentes resultados operativos, negocios fácilmente entendibles y analizables; y con un equipo de dirección y management excepcional.
Our investment proposal
The value of investment funds1 can fall as well as rise, and you may get back less than you invested.
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Legal text, Note: 1 Investment funds: The key investor information document, prospectus and all other legal documents related to Bankinter's collective investment institutions are available in Spanish at any of our branches, on the Bankinter website (www.bankinter.com) and on the website of the Spanish National Securities Market Commission (CNMV) (www.cnmv.es).
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Legal text, Note: 2 The fees shown are the sum of the management and depositary fees. These fees are charged annually.