2. Investment Strategy: Soft spot or Triple dip
2.1 A market adjustment, especially in the Eurozone
Performance from June 9, to October 29, 2014
Equity market performance
Stock
market performances
Euro
areaarea
- Performance
by sector
Euro
- Sector performances
From june, 9 to October 29, 2014
Local currencies, since June, 9 to October, 10 2014
2,8%
1,6%
-3,5%
-6,1%
-8,2%
-29,7%
Food & Beverage
Healthcare
Insurance
Technology
Media
Utilities
Telecom
Chemical
Financial services
Retail
Consumer goods
Industrial goods
Energy
Travel & Leisure
Raw materials
Banks
Auto
Construction
US
Netherlands
UK
Spain
-9,1%
EuroStoxx
-9,3%
Germany
-10,4%
-14,8%
Japan
France
Italy
Portugal
-20%
-15%
-10%
Source Datastream, Rothschild
Source Datastream, Rothschild
11
-5%
0%
2. Investment Strategy: Soft spot or Triple dip
2.21 Equity market
Europe is better value than the US
75
105
100
95
90
85
80
70
65
Eurozone
vs S&Pactions
500
Marchés
- DJ Eurostoxx vs S&P 500
P/E ratio compared per sector US/ Europe
Base 100 = 29/10/2010
2011
Sectors
2012
2013
2014
Oil & Gas
Oil services
Chemicals
Construction Materials
Metals & Mining
Aerospace & Defense
Building Products
Construction
Capital Goods
Transportation
Automobile & Components
Durables & Apparel
Hotel & Restauration
Media
Retailing (specialised)
Food Retailing
Beverages
Food Products
Tobacco
HPC
Health Care
Banks
S Diversified Financials
Insurance
Real Estate
Software & IT Services
Technology Hardware
Semi-conductors
Telecom
Utilities
Market
31
Europe
2014e P/E
US
2014e P/E
Ecart
11.5
12.3
16.3
17.6
14.9
14.1
18.1
14.9
15.8
15.2
9.9
17.2
19.2
16.3
19.4
12.7
18.9
21
14.9
19.8
17.2
12.8
13.3
10.3
19.2
17.4
21.8
27.9
17.1
14.3
14.9
16.8
18
46.4
20.2
15.5
21.3
17
16.3
17.1
15.2
18.4
21.5
20.8
22.9
17.7
19.6
18.4
16.5
19.4
17.3
12.8
15.5
11.3
43.2
19.1
14.3
16.2
14.9
15.9
-3.4
-4.5
-1.7
-28.8
-5.3
-1.4
-3.2
-2.1
-0.5
-1.9
-5.3
-1.2
-2.3
-4.5
-3.5
-5
-0.7
2.6
-1.6
0.4
-0.1
0
-2.2
-1
-24
-1.7
7.5
11.7
2.2
-1.6
14.7
16.5
-1.8
2. Investment Strategy: Soft spot or Triple dip
2.29 Style performance
Opportunities in cyclicals
110
100
90
80
70
60
50
Euro area – Cyclicals vs. Defensives
Zone euro - Valeurs cycliques vs défensives
100
juin
2007
100 ==3030
June
2007
: Mat 1ères,
Construction,
B&S indust, Auto
Cyclicals: Utilities, Real Estate, IndustrialCycliques
Goods & Services,
Automobiles,
Leisure
Défensives
: B.
Defensives: Personal & Household
goods, Food
& Conso,
Beverage,Alim
Health& Boissons, Santé
07
08
09
10
11
12
13
14
S
39

Coherent StingRay SD