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CNBC
a day ago
- Business
- CNBC
Investors looking beyond the U.S. see opportunities in one small pocket of Europe
European markets have seen a resurgence this year, with multiple regional indexes outperforming their Wall Street rivals. Amid a broad push to diversify portfolios away from the U.S., some traders see an "unmatched advantage" and "really good investment opportunities" in particular area of Europe. Earlier this year, volatility arising from U.S. President Donald Trump's unpredictable trade policies sparked widespread demand for assets outside of the United States . One of the beneficiaries of this movement was Europe , where investors saw a stable but undervalued market. But according to Frédérique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia, one pocket of the European market remains overlooked by international investors. "Most of our wealth clients who enquire about Europe have France and Germany in mind, and perhaps Italy and Spain, but few think of the Nordics where macroeconomic trends are encouraging," she said. Economic resilience The Nordics, nestled in the far north of Europe, have had a mixed bag this year when it comes to the performance of their publicly traded companies. Benchmark indexes in Norway and Finland, for example, have outperformed all three major Wall Street indexes, while those in Iceland and Denmark have recorded deep year-to-date losses. Much of the underperformance in Denmark is tied to the make-up of its benchmark OMX Copenhagen index. Pharmaceutical giants Novo Nordisk and Zealand Pharma have each shed around 48% so far this year, amid threats from Trump to slap tariffs of up to 250% on pharmaceutical goods. Disappointing clinical trial results , leadership changes and profit guidance cuts also weighed on Novo's share price. However, the Danish economy is renowned for its resilience, even if its biggest companies are under pressure, and that could benefit the country's equity market, Carrier told CNBC. "Denmark is widely seen as a resilient economy, thanks to its low level of indebtedness at the national level (debt to GDP a mere 28% while it enjoys a fiscal surplus of close to 4% of GDP), even as its pharmaceutical sector — which has largely driven growth in the past — is currently in the cross hairs of President Trump's new tariffs strategy," she said in an email. Sweden, she added, was benefiting from a "mild economic upswing," while Norway's central bank could soon start cutting interest rates to stimulate the country's economy. Markets are widely expecting Norges Bank to cut rates by 25 basis points at its next meeting in September, according to LSEG data. "Finland is the outlier, with a more subdued macroeconomic outlook than its peers," Carrier added. She noted that equity investors looking to allocate to European stocks should take "a highly selective approach to investment." "Our focus would be on high quality companies with a strong business model, a broad international revenue base and robust cash flow generation, an area where the Nordics are particularly well represented," she said. "Such quality does not necessarily come cheap and investors might want to wait for an opportunistic price correction before building positions." 'Unmatched advantage' The Nordic region is rich with opportunities in emerging industries, according to Tor Langøy, founder of London-based investment advisory BD Globe Capital Partners and Viking Digital Campus, a hydro-powered digital corporate campus on Norway's west coast. "The Nordic region is rapidly emerging as a strategic hub for AI and hyperscale data center investment, attracting unprecedented global capital," he told CNBC. Various high-profile companies have recently unveiled large-scale investments in the Nordics this year, many of which are for tech infrastructure. Brookfield Asset Management, which manages assets worth more than $1 trillion, announced in June it would allocate up to 95 billion Swedish krona ($10 billion) to support the development of AI infrastructure. Meanwhile, OpenAI announced at the end of July that it would spearhead a multibillion-dollar data center project in Norway that would deliver 100,000 Nvidia graphics processing units by the end of 2026. Langøy said that Norway in particular had an "unmatched advantage" when it comes to investment opportunities. "Norway offers a rare combination of attributes that few — if any — markets can match," he said. "[It boasts the] lowest electricity costs in Europe, powered by 100% renewable hydropower, accelerated grid connection timelines, enabling faster go-to-market, [and] supportive, pro–data center government policies that welcome strategic infrastructure investment." He argued that Norway will "continue to lead" thanks to its energy security, connectivity resilience and geopolitical stability. In the second quarter of this year, Swedish investment firm Investor AB saw a 6% return on its listed company holdings. Among those holdings are various Nordic firms, including telecom giant Ericsson, defense contractor Saab and home appliance manufacturer Electrolux. During the reporting period, AB Investor invested 1.2 billion Swedish kronor to increase its stake in Ericsson to 9.7%. "As the world leader in mobile network technology, Ericsson is well positioned to capitalize on its strong market positions and find new growth avenues over time," AB Investor's President and CEO Christian Cederholm, said in the firm's second-quarter earnings report. "While we operate in an unpredictable world, I remain confident in Investor's and our companies' ability to generate attractive long-term total returns." Cederholm later told CNBC that there were also opportunities in the Nordic region's private markets. "For the private assets we are looking for, i.e. high-quality companies with long track records of good, profitable growth, really there are very seldom times when you can make a bargain," he said. "So we're not bargain hunters, we're in this for the long term … on the positive side, I would say that between our focus markets, which are the Nordics and North America, there are a really good investment opportunities." — CNBC's Arjun Kharpal contributed to this report.
Yahoo
25-07-2025
- Business
- Yahoo
3 Reasons Buying Individual Stocks Is a Mistake, According to a Viral Finance Educator
Most people know that the dream of picking a winning lottery ticket and striking it big is not very realistic. Yet people go into investing with the belief that they can pick 'the perfect stock' and strike it big without realizing it's not much different from playing the lottery. Find Out: Read Next: If you're trying to buy individual stocks, you're working too hard. Viral finance educator Chris Browning, known as 'the popcorn finance guy' and founder and host of the award-winning Popcorn Finance Podcast, gave three reasons why you shouldn't be trying to buy or pick individual stocks. 1. Even the Most Sophisticated Can't Crack It Browning got his degree in finance with an emphasis in financial planning but said in a recent Instagram post that even with all that education 'the odds are not in my favor.' In fact, he said, even people paid 'a lot of money' to pick stocks can't always do it successfully. What makes the average investor think they'll be any better at it? Be Aware: Why Is Stock Picking Hard? Part of what makes stock picking so difficult is summed up in something called the 'Efficient Market Hypothesis' which suggests that all the information that helps you predict a stock's rise in value, from company performance to economic outlook, is already 'baked in' to the stock price. So, you're not likely to find undiscovered gems that aren't already priced as they should be. The only other sure-fire way to pick a stock is illegally, with 'insider information' that nobody else has and which can give you an advantage. There's also the problem of human emotion and ego that gets people in trouble when stock picking. According to RBC Wealth Management, things like 'following the crowd' (jumping on a trend); avoiding pain (under-investing or picking); selective confirmation (seeking stocks that somehow confirm their ideas about an investment) or just plain panic buying or selling all tend to work against good results. Browning doesn't fight this truth, saying, 'I'm not going to be good at it.' 2. Finance Experts Are Not Motivated, So Why Should You Be? Browning's second reason is a simple statement, 'I don't want to.' Reflected within that statement is a larger truth: Finance experts aren't motivated to try stock picking because they know it's unlikely to work. Instead, you should put your energy into investing strategies that work, he said, like index funds over individual stocks. Index funds are a kind of bundle of stocks organized into a larger fund that bring a reliable kind of return and a lower risk. 3. It's a Waste of Time Browning brings his signature blunt style to his third reason as well. 'Ain't nobody got time for that.' Instead of sitting around trying to ineffectually guess and hope and wish that he can land on a 'magic' new stock that is about to surprise the market with its performance, he's going to focus on tried and true investment practices. Instead, Consider: Investing in low-cost index funds: Put your money in these funds and dig in for the long haul, as they tend to perform best over time. Investing in ETFs: Exchange-traded funds are somewhat similar to index funds in that you invest in a diversified portfolio of assets, but they can be traded like individual stocks. You can choose from ETFs focused on sectors, such as tech or healthcare, or dividend-paying stocks, while keeping costs and risks lower. Automating with dollar-cost averaging: The best way to make money in the stock market is to keep investing a consistent regular amount (ideally automated), over time, for a steady return. Sometimes stocks will be up, sometimes down, but you'll stay the course and reap the returns. Stock picking sounds exciting, but for the average investor, it often leads to lower returns and higher stress. Take Browning's advice and lean into strategies that have proven results, not unexpected outliers. More From GOBankingRates The New Retirement Problem Boomers Are Facing This article originally appeared on 3 Reasons Buying Individual Stocks Is a Mistake, According to a Viral Finance Educator
Cision Canada
16-07-2025
- Business
- Cision Canada
d1g1t selected to help enhance RBC Wealth Management's technology infrastructure
RBC is also making an investment in d1g1t to help accelerate the company's R&D and U.S. market expansion TORONTO, /CNW/ - d1g1t, a leading enterprise wealth management technology company, today announced an engagement with RBC Wealth Management. Under the terms of the engagement, RBC Wealth Management will leverage d1g1t's institutional-grade performance and risk analytics engine to deliver an enhanced digital experience for advisors and clients in Canada. Introducing the d1g1t calculation engine will help accelerate RBC Wealth Management's investment in enhancing the firm's existing technology infrastructure through additional advanced features. d1g1t's sophisticated tools will help support advisors' ability to provide enhanced reporting across a variety of key client metrics. "We're excited about leveraging d1g1t's capabilities to enhance our advisor and client experience," said Mike Scott, SVP and Managing Director, RBC Wealth Management. "The platform brings together advanced analytics, and real-time insights. This is a clear demonstration of our continued investments in cutting-edge technology infrastructure to help deliver a best-in-class client experience." Headquartered in Toronto, d1g1t recently won the Portfolio Management category and was recognized as a finalist in the Consolidated Reporting category at the 12th Annual Family Wealth Report Awards 2025, highlighting its capabilities in these areas. RBC investment in d1g1t In addition, RBC is leading an investment round in d1g1t, alongside participation from JAM FINTOP, a Venture Capital firm with strategic limited partners that invests in companies changing the way financial institutions and their customers move, track, and interact with money. The investment will be used to help accelerate d1g1t's product roadmap, scale its operations and grow the team, and deliver growth and broader adoption across North America. "We're proud to invest in d1g1t, a company that's helping to redefine wealth technology," said Barrie Laver, Managing Director, Head of Venture Capital and Private Equity, RBC. "What sets them apart is the combination of deep financial engineering expertise, bold technology vision, and a product that's purpose-built to help solve the most pressing needs of modern wealth firms." "The opportunity to work with RBC is a major milestone for us," said Dr. Dan Rosen, CEO and Co-founder, d1g1t. "RBC is a global financial leader, and we're honoured to bring our capabilities to them as they reimagine the future of wealth management, bringing next-generation analytics at scale, and a great digital user experience to the forefront." About d1g1t d1g1t is a leading wealth management technology provider that helps RIAs, Multi-family offices, Broker Dealers, Custodians, and Bank Advisor Networks transition to a digital business model. Our award-winning Enterprise Wealth Management Platform is designed to transform the patchwork of legacy systems with an integrated platform that drives scale and operational efficiencies across the organization. Powered by an institutional-grade performance and risk engine, d1g1t provides on-demand analytics consistently used across integrated workflows for reporting, billing, trading, compliance, and client engagement activities. d1g1t provides advisors and their clients with the best digital experience available in the market, enabling firms to elevate the quality of their advice and demonstrate its value to clients. Learn more at About RBC Wealth Management RBC Wealth Management directly serves affluent, high net worth and ultra-high net worth clients globally with a full suite of banking, investment, trust and other wealth management solutions, from our key operational hubs in Canada, the United States, the British Isles, and Asia. The business also provides asset management products and services directly and through RBC and third-party distributors to institutional and individual clients, through its RBC Global Asset Management business (which includes BlueBay Asset Management). It also includes our Investor Services business. RBC Wealth Management has over C$4.8 trillion of assets under administration, over C$1.4 trillion of assets under management and more than 6,000 financial consultants, advisors, private bankers, and trust officers. For more information, please visit
Bloomberg
13-06-2025
- Business
- Bloomberg
Cyclical Downturn in US Dollar: Carrier
Frederique Carrier, Head of Investment Strategy at RBC Wealth Management, sees a cyclical downturn in the US dollar as investors will seek to diversify assets from the US and the US economy is likely to weaken in the second half. She speaks to Bloomberg's Guy Johnson and Anna Edwards on 'The Opening Trade.' (Source: Bloomberg)
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Business Standard
01-06-2025
- Business
- Business Standard
Europe stock markets stage world-beating rally as trade war backfires
By Sagarika Jaisinghani and Julien Ponthus Europe's equities have emerged clear winners worldwide as the region's economic outlook brightens at a time when President Donald Trump's trade war hobbles US financial markets. Five months into the year, eight of the world's 10 best-performing stock markets are in Europe, according to data compiled by Bloomberg. That list features Germany's DAX Index with a rally of more than 30% in dollar terms, as well as peripheral markets such as Slovenia, Poland, Greece and Hungary. The pan-European Stoxx 600 Index is beating the S&P 500 by a record 18 percentage points in dollars, powered by Germany's historic fiscal spending plans and a stronger euro. Market participants say there's more to come as resilient corporate earnings and attractive valuations make the region a safer bet when concern over trade and fiscal debt grips the US economy. 'Europe is back on the map,' said Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia. 'We are getting more questions about Europe now over the last two months than we did over the last 10 years.' The outperformance, if it lasts, will mark a turnaround from years of sluggishness for European markets. And the rally may just feed on itself: As stocks on the continent rise, they're likely to attract fresh assets from around the world, equity bulls say. UBS Group AG analysts said in a recent note that investors' shift away from US assets will channel €1.2 trillion ($1.4 trillion) into Europe's stock market over the next five years. An early impetus for this year's gains came from the proposal by Berlin — famous for its fiscal austerity — to spend hundreds of billions of euros on infrastructure and defense. Citigroup Inc. economists expect the reform to boost growth across the euro area from the second half of 2026. On the other side of the Atlantic, investors are on recession watch again amid concerns around inflation and America's fiscal deficit. Sentiment toward Treasuries took a hit in May after Moody's Ratings stripped the US of its top credit grade, with bond yields also climbing in response to Trump's tax-cut proposals. And in a blow to the president's trade agenda, a US court has issued a rare rebuke blocking many of the import taxes he has threatened and imposed on key partners. A proposed tax measure is also raising alarm on Wall Street as it would increase tax rates for individuals and companies from countries with 'discriminatory' tax policies, potentially driving away foreign investors. The S&P 500 rebounded in May, but remains a laggard for the year. The index has gained only about 0.5% in 2025 compared with a 12% jump in the MSCI All-Country World Index excluding the US. It also ranks 73rd among the 92 indexes tracked by Bloomberg. Beata Manthey, head of European and global equity strategy at Citigroup, said the euro area is in 'a relatively good place' as the European Central Bank has room to reduce interest rates further, while equity valuations aren't stretched. 'Of course if there's a US recession, no market would go unscathed, but the lack of exuberance in Europe makes it more resilient to a deeper selloff,' Manthey said. 'Investors had shunned the region for so long that inflows are still tiny compared with outflows of the past few years.' Peripherals Winning A slate of Europe's smaller markets is dominating the leader boards this year. Slovenia's blue-chip SBI TOP Index is the world's second-best performing gauge with a rally of 42% in dollar terms, behind Ghana's benchmark. Poland's WIG20 Index has gained 40%, while benchmarks in Greece and Hungary are up more than 34% each. Strategists at Societe Generale SA have recommended peripheral European markets this year, citing a wider risk premium as well as relative political stability. The team continues to predict an outperformance as they expect sovereign bond yields to be more protected than in some of the big spenders such as France and Germany. Defense stocks have been among the biggest winners this year, with seven of the 10 best-performing stocks in the Stoxx 600 related to the sector. All have surged at least 90%, with German contractors Renk Group AG, Rheinmetall AG and Hensoldt AG leading the pack. Banks and insurance stocks have also outperformed in 2025. 'What's not to love about European equities?' said Florian Ielpo, head of macro research at Lombard Odier Investment Managers. 'In the US you're punished for taking risk, but in Europe you're rewarded for it. Inflation looks contained, and there's finally some visibility. In the US, you're still wondering what will happen tomorrow, what tweets will you see.' Earnings Optimism Corporate earnings have been a bright spot, with first-quarter profits at MSCI Europe companies rising 5.3% compared with expectations of a 1.5% decline, according to data compiled by Bloomberg Intelligence. While many executives tempered their outlooks given lingering trade uncertainties, fewer analysts have cut earnings estimates in the past weeks, suggesting the worst of the downgrades may be over. To be sure, the global trade outlook remains a key risk. A federal appeals court has offered Trump a temporary reprieve from the ruling threatening to throw out the bulk of his tariff agenda. The president also said he would be increasing levies on steel and aluminum to 50% from 25%. Many European industries including miners, automakers and luxury goods are heavily exposed to international markets for revenue. Analysts this year have reduced Stoxx 600 earnings estimates for the coming 12 months by about 1.4%, according to data compiled by Bloomberg. Some market forecasters still bet European stocks will race past their US peers, with the team at JPMorgan Chase & Co. calling for the biggest outperformance on record. On average, a Bloomberg survey of 20 strategists found the Stoxx 600 is expected to gain another 1% from current levels. 'For the first time in a really long time I do believe there's a chance that European stocks can outperform the US market,' said Francois Rimeu, a strategist at La Francaise Asset Management. 'Now for this outperformance trend to hold, earnings will need to show some real growth next year.'
