1. Goldman is bullish on Germany.

German earnings growth is likely to be one of the strongest among developed markets in 2027, Goldman Sachs believes, as its equity market is exposed to many of Europe's key growth themes.
Consensus expects German EPS growth of 17% next year, well above the 9% expected for the STOXX 600.
"The macro backdrop remains supportive of Cyclicals," writes Goldman Sachs.
"Improving growth, rising defence and infrastructure spending, electrification, energy security investment and AI-related capex continue to provide powerful structural tailwinds."
That said, some of Goldman's key underweights are particularly relevant for Germany, as the bank is cautious on chemicals, autos and healthcare.
The good news is that some of those sectors, particularly autos, now make up just a small share of the market cap of the blue-chip DAX index.
Autos, for example, make up just 7% of the DAX market cap, from over 20% in 2016.

2. US dollar remains weak despite higher rates.

“A firmer inflation print could provide some near-term support, but absent that, we think the US dollar may continue to trade with a relatively heavy bias”

3. Gold versus US dollar.

4. Tech is king.

5. The real-estate sector has de-rated materially and has rarely traded on this P/E multiple.

Also, the sector is the most underowned by long-only investors and a large body of investors has no exposure.
Put it on your radar and wait for the interest rates to stabilize.
Source: Morgan Stanley

6. Buy French stocks.

The CAC40 is extremely oversold.

We particularly like Engie, Orange, Veolia, Eiffage and Legrand.

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