News

“Only the wisest and stupidest of men never change.” — Confucius. Our scenario is always that of a strong economic cycle but seasoned with a new inflationary regime (unknown for at least 20 years). The good news is that the worst for the pandemic may be over (thanks Green Pass!), barring new aggressive variants. The bad news is that the cycle could "commit suicide" due to its own side effects (inflation, energy shocks, bottlenecks). In the most benevolent and likely scenario, the former, we do not expect contagion effect from China and remain moderately constructive on equities while anticipating periods of volatility and a correction potential above the now discounted 5%. BlueStar recommends favoring cyclical and value sectors in a context of controlled and well-balanced allocation.

A battle has been won against Covid, not the war.
Extreme measures are justified by the criticality of the moment.

The worst seems to have passed but the recovery we are seeing is not comparable to those of the past: this will be more "explosive" and lasting but with some side effects that the market persists in ignoring.