Summary

1. Arrivederci, GINO! The most common type of portfolio among equity investors is the GINO-portfolio as their allocation is Global In Name Only. We feel it´s time to wave goodbye to GINO and start rebuilding a truly global portfolio

2.What (not) to buy in Europe – We reiterate our neutral call on Europe as it will be a European equity market of two speeds: We like locally focused companies benefitting from efforts to enhance European autonomy while we keep avoiding the pockets of the market with too much US (Dollar) exposure. European SMIDs look particularly cheap.

3.Southern Momentum – Fitting our overweight call on Emerging Markets, we discuss the positive political backdrop in Latin America and why Mexican Equities are attractive again

4.Upgrading India to Overweight- India has underperformed the rest of the world this year. We expect to see India to catch up next year. There are some signals of a turnaround in economic and earnings momentum which was shown by strong Q3 results. Valuations against EM peers have normalized, making it a compelling case given the strong fundamental backdrop.

5.Sectors - No changes : In both the US and European regions, we consider it sound (and bullish !) to observe a certain sector rotation, with interestingly Health care and Utilities having led the last few months, while other 2025 underperforming sectors are also trying to recover.