Geographic neutrality. Valuation opportunity in Europe, at recession prices.
The most defensive sectors can benefit from a late macro cycle, even recessive:
- Health: We can find quality companies with stable income and margins.
- Agri-food: the climate crisis and the war in Ukraine put pressure on food prices.
- Defensive consumption: with the capacity to transfer price increases to the consumer.
Long term opportunities:
- Technology: at reasonable multiples for long-term growth.
- Biotechnology: advances in the treatment of diseases will encourage M&A in this sector.
- Renewables: the need to decarbonize drives huge investment plans in renewable energies.