Banca March considers that stock valuations are now more attractive than at the beginning of 2026. This is due to a significant increase in corporate profits, which has accompanied the recent rise in stock indices.
Stock valuations have improved compared to the beginning of the year, according to information provided by Banca March. The entity highlights that corporate profits have increased, making shares more affordable.
Joan Bonet, Director of Strategy and Advisory at Banca March, points out that the S&P 500 is now being acquired at a lower earnings multiple than at the beginning of the year, creating a favourable context for investing in equities. According to their projections, the S&P 500 could appreciate by 8% in the next 12 months, while the European stock market could do so by 6%.
The entity identifies the United States and emerging markets as the main areas for investment, highlighting Germany for its fiscal boost. Additionally, the technology sector remains a priority, especially for companies benefiting from infrastructure plans related to data centres.
Banca March also observes a significant shift in the debt market, where large tech companies are increasing their participation in bond issuances. These companies are expected to generate greater competition for capital, raising government risk premiums.
On the other hand, the entity anticipates that the US dollar could depreciate, estimating an exchange rate of 1.21 dollars per euro in the next 12 months.
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