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Buy American, says the largest asset manager in Europe



Sometimes it is necessary for someone to be fully aware of something.

Amundi Asset Management, Europe’s largest asset manager, has conducted research that shows why US stocks have outpaced the world and why this performance can continue.

Amundi has written two from his Boston office – Craig Sterling, head of US stock research, and Marco Pirondini, head of US stock markets. and the American economy.

S&P 500 SPX,
-0.64%
surpassed the rest of the developed world as measured by the MSCI Europe, Australasia and Far East 990300 index,
+ 0.87%.
in 19 of the last 30 years and with cumulative yields of 1574% compared to 235%. This is no coincidence, because American companies have higher profit margins and are constantly increasing their capital costs.

Amundi expects this performance to continue.

“Given the consequences of the pandemic and the recession, we believe that economic uncertainty has caused a lack of clear visibility into revenue, which is likely to exacerbate low-income companies. In addition to lower investment in innovation, technology and healthcare, which is inherent in the non-US stock market, structural and economic pressures persist as growth capital expenditures are limited, ”he says.

While US awards are not cheap, investors get what they pay for with a better return on investment.

Much of these results stem from the US dominance in technology, which the Amundi couple expects to continue. “The combination of world-class universities that develop technology and serve as a starting point for start-ups to commercialize it, a well-developed venture capital industry and a cultural willingness to take risks are making it harder for other regions of the world to outperform the United States. “A couple say, only China has proven to be a viable global competitor.

Monetary and fiscal policies that place more emphasis on the stock market are, in addition to technology, an advantage for US equities, as well as greater threats to shareholder activism and mergers and acquisitions. Lower taxes and a flexible labor market also support the US market.

The unique couple supports a corporate culture of share repurchases that are much less widespread outside the United States. “The key advantage of share repurchases is that they allow capital to be recycled throughout the economy, so that capital can end up in the most innovative hands and they are not trapped inside less efficient and more advanced companies,” says Amundi.

sounds

On Tuesday, according to data from the COVID-19 surveillance project, there were 53,507 new cases of coronaviruses in the USA, which is a three-week minimum. China, meanwhile, has announced its highest outbreak in weeks – 101 – as there are also cases of Japan and South Korea.

It’s a big day in Washington, DC, where the heads of the world’s largest technology companies Amazon.com AMZN,
-1.79%.
Apple AAPL,
-1.64%.
Facebook FB,
-1.44%
the GOOGL alphabet,
-1.68%
will appear by videoconference before the House Judicial Antitrust Subcommittee, which begins at noon east. The Federal Reserve will announce its last interest rate decision at 2:00 p.m., and President Jerome Powell will hold a press conference at 2:30 p.m. Negotiations are expected to continue on a new stimulus law, with major controversy over issues including whether $ 600 in weekly unemployment benefits are being extended.

As the revenue season continues, General Electric GE
+ 2.68%
reported a wider loss than expected but better than expected sales and cash flow.

Advanced Micro Devices AMD,
-1.97%
equities may reach record highs after the microchip company reported second-quarter earnings that exceeded expectations and raised its full-year forecast. Starbucks SBUX,
-2.38%
recorded a loss from a 40% drop in sales in the same store, but coffee chain stocks increased in the grocery store. Shopify SHOP software company,
+ 0.88%
rose sharply after a much stronger earnings report than expected.

The market

After a 205-point decline in Dow industrials DJIA,
-0.77%
on Tuesday US stock futures ES00,
+ 0.20%
YM00,
+ 0.07%
NQ00.
+ 0.50%
pointed to a clearer start.

Gold GC00,
+ 0.42%
and silver SI00,
+ 0.70%
advanced futures.

Yield of 5-year-old gold-plated TMBMKGB-05Y in the United Kingdom,
-0.105%
reached a record low of -0.135% before jumping higher.

Random readings

MacKenzie Scott said on Tuesday it had donated about $ 1.7 billion in the last year since the divorce from Amazon CEO Jeff Bezos.

Help? Democratic presidential candidate Joe Biden was photographed with handwritten notes about Senator Kamale Harris, who believes he will be his runner.

There is an asteroid near Mars – it was discovered by two Indian teenage girls.

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