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08.28.2025

Still NEUTRAL

We reiterate our tactical NEUTRAL stance on global equities.

​​Against a still solid fundamental backdrop, we expect the 25%+ rally that has unfolded since April to pause until seasonality turns favourable again and global trade policy uncertainty, especially around semiconductors, fades. Accordingly, we expect the equity market to move sideways over the next few weeks, while volatility eventually spikes from current, extremely compressed levels.

Strategically, we reiterate our OVERWEIGHT stance on equities, viewing any market weakness as a buying opportunity.

From a regional perspective, we cut the US to NEUTRAL, while upgrading Japan to LONG. We remain NEUTRAL on Europe and EM, and SHORT on the UK.

​​​From a sector standpoint, we now suggest a barbell approach in terms of market beta. We continue to favour AI-related sectors such as Semiconductors and Software, and cyclical Value sectors like Banks, but we offset this high-beta exposure by going LONG on Pharma and maintaining exposure to Telecoms.​

COSIMO RECCHIA
Senior Equity Strategist

FRANCESCO PONZANO
Junior Equity Strategist





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