ABN AMRO Private Banking maintains its overweight position on equities, but advises careful stock selection and risk mitigation via hedge funds according to ‘Time for Selection,’ the bank’s Q2 2014 Investment Outlook.
This position is carried on from the last quarter’s overweight position on European equities and underweight in the US supported by recovery in developed countries and global growth of 3.7%. US economic data is also predicted to bounce back after a recent drop with rates forecast to rise by 1.5% by the end of 2015.
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Didier Duret, chief investment officer, said: "Now is the time to zero in on companies with the capacity to deliver earnings and to select bonds that can cushion interest rate risk. We also recommend hedge funds with strategies that can benefit from volatility and divergence among markets, countries and companies."
