Natixis IM Raises US Equity Allocation to Cap as Earnings Growth Outweighs High Rates

Mabrouk Chetouane, global head of market strategy at Natixis Investment Managers, said the firm has raised its US equity allocation to the maximum allowed in its model portfolio, arguing that geopolitical conflict alone is not a reason to cut exposure and that falling corporate earnings are. On regional allocation, Natixis is bullish on Japan, cautious on Europe, maintains its "strong growth, thin profits" characterisation of China's new economy, and warns of a mismatch between expectations for AI capital spending and returns.