FIMARGE Funds and SICAVs

When it seemed that no more rate hikes were coming, strong employment data together with core inflation of 5.5% (well above a level that is comfortable for the FED) put the debate back on the table. In fact, even though the members of the Fed have divergent opinions on whether maintaining or raising rates, the market is already pricing in rate cuts of -50bp in September/October. In Europe, Christine Lagarde is clear: "Rate rates will be raised to sufficiently restrictive levels and will remain there for as long as necessary." This could lead to a cooling of the economy. That is why we think it is differential to have leaders in niche markets, because they can steal more market share when things get complicated. With the earnings season now over, we can say that the companies’ results in the portfolio have been clearly satisfactory across the board, which is the key to future value creation.