Earnings beat forecasts, following analysts' downward adjustments. The most cyclical sectors have already bottomed out, preparing the start of a new cycle. We favour companies that have the capacity to transfer price increases without prejudice to sales and high cash conversion of their results. Prioritize sectors that endure an environment of recession or stagflation.
- Technology: Growth superior to other sectors and cash generation in companies that have competitive advantages.
- Cyclical consumption: It usually makes floor before the beginning of the recovery.
- Renewables: the need to decarbonise drives huge investment plans in renewable energies.