As you may know, we at BinckBank are not only crazy about investing, but also about cycling. What better time to take a look at France and the Paris stock exchange through investor glasses than during the Tour de France.
How can you invest in France? And which interesting and renowned companies are listed there? When thinking about investing and France, you may not automatically think of Airbus or Danone, but rather of an investment in a second home or a farm renovation project.
The road to Paris
However, this ignores the fact that, after London, the Paris stock exchange is the largest in Europe. And, together with Brussels, it belongs to the Euronext family.
As with the Tour, all French economic roads also end in Paris, and with a diverse range of well-known listed companies and French brands, which we often encounter in our daily life.
The most popular with Belgian investors is – because of the Belgian link and former Brussels listing – Engie. This does not mean that we automatically recommend these shares as an investment. Therefore, you should first thoroughly familiarise yourself with a company in which you are considering investing.
Climbing from the valley
Although prices have also picked up in Paris in recent months, it will have to go even further uphill to get rid of the losses from the corona blow. All in all, the CAC 40 is still about 15 percent lower compared to the beginning of the year.
This is roughly in line with the performance of the BEL20, but is out of tune when looking at the American indices, which have completely made up the losses or are even in the plus again.
The cause can largely be traced back to the French economy, which has been impacted more strongly due to the coronavirus, and the sharp blow of more than 30 percent for a number of heavyweights in the French index. This may make the French stock market interesting for you if you see a chance of a stronger recovery in the coming months. Of course, much depends on how the corona crisis will develop, and whether the other hard-hit CAC 40 stocks such as Airbus, Accor, LVMH, and the banking sector can still recover.
Leaders and young talent
As mentioned, Euronext Paris is home to many well-known companies. From insurer Axa to major car brands such as Peugeot and Renault. But also luxury giant LVMH (Louis Vuitton Moet Hennessy) and not forgetting beauty expert L’Oreal. Shares of which, like the rest of the world, are currently experiencing many turbulent times, but which have also been experienced by BinckBank investors for many years.
Seat, meat and stamina
Just like with other investments, if you want to invest in France you should first explore the market well and get to know the companies and the prospects of the French economy. In cycling, there are three important elements to ultimately achieve an optimal return: seat, meat and endurance.
This is something that not only applies to riders of the Tour de France but can also be applied both this year and in the following years when it comes to investing in France. It will also apply to the riders of the 4th BinckBank Tour that will start at the end of September, including Team Sunweb sponsored by our bank.
We wish you the best on the road and on the market!
At Binck, portfolio managers are available for private consultations via telephone or Skype. You can also connect with Kaspar Huijsman, Director of Binck Spain and Portugal, via linkedIN www.linkedin.com/in/kasparhuijsman or by email at [email protected].
Trading in financial products always involves a risk. The value of your investment may go down as well as up. As a general rule, you should therefore only trade in financial products if you understand the products and the risks associated with them.