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ABN AMRO puts its money on growth stocks

Growth stocks look set to benefit from short-term investor caution and a European slowdown in the medium term, says ABN AMRO.

Senior portfolio manager Arjan Palthe claims that growth stocks will do well if confidence in equity markets improves after the July/August sell-off.

He says: “When markets rebound, we believe that people will first buy the larger, less risky stocks because they will still be cautious about the markets. In that climate, stocks of quality companies with a proven track record of delivering profit growth are likely to outperform.”

Palthe believes that growth stocks also have medium-term attractions and is confident that investors will turn to the growth style in the less robust economic environment ahead.

He adds the slowdown in demand in the US is being offset by solid demand both within Europe and from Latin American and Asia, but European indicators seem to be peaking and European profit growth will probably start to decline.

He says: “In the more cautious economic environment ahead, we expect investors to seek out companies with a business model or exposure to certain industries that allows them to outgrow the market in terms of earnings growth. This will prompt investors to turn to growth stocks.”


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Self-investment for protected rights could be given the green light by October, removing restrictions that prevent investors directly self-investing in shares, bonds or commercial property.

An American tale

US investors are on the sidelines but a reverse in the weakening dollar leaves plenty of room for upside

Is this the endgame for the current mergers & acquisitions boom?

Last year, worldwide mergers and acquisitions (M&A) rose to an unprecedented $4.7tn, according to Thomson Reuters, a 41 per cent increase over 2014. Anthony Forcione, senior equity analyst at Loomis Sayles, an affiliate of Natixis Global Asset Management, looks at what’s been driving this particular wave of mergers. Click here to view full article: Loomis-Sayles


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