Head of Equities
We’re approaching the end of the economic cycle, but markets are not stupid. Investors waiting for a significant collapse in the equity market because the economy is slowing may be in for a long wait.
EuroView: While firms are more financially robust than a decade ago, a willingness to embrace social responsibility and adapt to technological change are other key measures of the outstanding companies of tomorrow.
We see scope for positive progress in 2018 as corporate profitability improves, inflation remains low and stock fundamentals become more important in driving share prices.
With Angela Merkel set for a fourth term as Chancellor, we think the market’s focus should return to Europe’s strengthening economy.
With interest rates set to normalise at low levels and profit margins improving, we see scope for significant gains.
Rory Bateman discusses key themes in European equities, including the rotation towards value, prospects for corporate earnings, and the investment implications of a Donald Trump presidency.