Investors should buy the asset classes yet to benefit from the expansionary monetary policy

We look at the situations of the United States and the euro zone. Both countries are characterised by a monetary policy that will remain expansionary for a long time, which will drive up asset prices despite a very likely fall in potential growth. This effect of the highly expansionary monetary policy on asset prices is already visible with regard to : Credit spreads; US equities . We believe that investors should invest in asset classes that are yet to benefit much from the monetary expansion: real estate and European equities; and within European equities, the following sectors in particular: oil and gas, automotive, agri-food, travel and leisure, media, telecoms and finance. All these sectors have been hit by the crisis and their share prices have collapsed.