Asset Management: CIH Capital Management Continues to Favor "Value" Stocks and Long Duration Bonds

Despite the historic rise of the Casablanca Stock Exchange, with the MASI up nearly 30% year-to-date, CIH Capital Management (CCM) remains cautious and does not give in to market euphoria. In its Q3 2025 Outlook report, CCM reinforces its “Value” strategy, deemed optimal for capturing market inflows while limiting valuation-related risks. This approach is based on strong corporate earnings—especially in banking and construction—low inflation (1% forecasted for 2025), and an expected GDP growth of 4.6%. Value stocks benefit from attractive valuations, renewed risk appetite, and favorable capital flows. In contrast, “Growth” and “Quality” stocks may face profit-taking due to tighter valuations. On the bond side, CCM continues to favor long-duration bonds, expecting yields to decline further due to steady demand, moderate inflation, and more accommodative monetary policy expectations. Recent inflation control and increased external borrowing to meet Morocco's treasury needs also support falling yields. Despite some gains already realized, long maturities still offer upside potential. To diversify returns, CCM also recommends short-term private credit exposure. By combining Value equities and long-duration bonds, CIH Capital Management upholds a philosophy rooted in discipline, prudence, and intrinsic value.