It’s been another hectic week with ever-shifting headlines on trade, geopolitics and macro signals. The China trade deal landed over the weekend and although a lot of details are still unclear, it gives us a path out of the tariff and trade war quagmire. Meanwhile, a US-EU trade deal looks trickier and the US administration is signaling a very hard stance.
This is underscored by our models package, which suggest a slightly improving growth picture and – perhaps more importantly – a softer inflation picture. Most investors are still expecting a tariffs-driven inflation hike, but I’m not so sure that will be the case. This will guide our decision-making in coming weeks if our models confirm this.
We have had decent luck with our thematic bets in the European digital defense sector and are looking forward to more of the same in coming days and weeks.
Overall, we are very excited about the coming months and believe we have an edge on consensus positioning, which should give us a path to a solid return during the summer.
We are getting closer to the June 2nd trade date, so if you’re considering joining as an investor or increasing your existing ticket, please book a meeting right here: https://calendar.app.google/TPyBCupHcUrptUvQ8
Best wishes,
Andreas Steno, CIO
