In its meeting on 2 February, the ABN AMRO Global Investment Committee (GIC) decided to cut the current 15% relative Underweight for equities by half to around 7.5%.
In its meeting on 2 February, the ABN AMRO Global Investment Committee (GIC) decided to cut the current 15% relative Underweight for equities by half to around 7.5%, based on the following considerations:
- recent macro data are on average better than expected across the globe, further reducing the threat of a dip into a global recession in the months ahead
- the ECB is providing support to the banking system through extensive liquidity programs. The Fed has also confirmed the ultra accommodative monetary policy. These developments reduce the systemic risk of the financial system
-the probability of an EMU breakup is receding, although this risk is not completely eliminated
These factors are interdependent and provide a more constructive context for being less risk-averse and more positive on equities. However, we advise to remain Underweight equities as a resurgence of sovereign debt risks can affect the growth prospects and market sentiment.
You will find more details in the attachment.