Hello Friends,
And happy Friday!
Last newsletter of the summer: I’m taking a break from publishing and coming back to you in September.
Today, an excerpt of a very insightful report by Natixis (not investment advice).
Retail investors expected return for their investments is nearly 10pts/3x higher than experts estimates:
The gap varies across countries, but the overall trend is very consistent:
While both fundamentals and monetary mass are both peaking, investors expectation keep rising:
Macroeconomics remains clear that valuations can’t keep going up and decorrelate themselves from productivity/GDP growth at an accelerated pace without being brought back to correlation at one point or another… but it seems like everyone is thinking that this won’t happen in the years to come.
Finally, it does seem that investors remain aware (and worried) by the underlying causes for a potential debt crisis… but irrationally ignore it when estimating their own risk/return expectations.
What do you think?
Thanks for reading, and have wealthy summer,
V