In this context, the American and Swiss markets fared better than the European market. This difference was mainly fuelled by the sectoral nature of this rebound, with health and technology having been the big winners. With having nearly 40% of companies active in the health sector, we can better understand how the SMI benefited from this rebound.
The United States, for its part, profited from the explosion of the technological sector with the GAFAM (Goog-le – Amazon – Facebook – Apple – Microsoft). These companies have shown how resilient their business model was during this crisis. The lockdown has also favoured online consumption and teleworking.
The players with a model focused on digitalised consumption with controlled logistics have therefore been the big winners on the consumption side. In addition, lockdown has accelerated the transition to the cloud and dematerialised and nomadic work. Chinese stocks have also been very resilient.
The Shanghai Composite, which has posted a performance of 20% since the start of the year, has rebounded by 29%. Another good reason to believe in the potential of China. Margin growth should continue and valu-ations are very attractive. Compared to the United States, Chinese equities are trading around 13 times earnings, compared to 22 times for US equities.