Investment Strategy: Stocks still in favour
ABN AMRO remains convinced that the synchronised global recovery is supporting risky assets. Stocks and real estate continue to be favoured over bonds, commodities and hedge funds, while a large cash position is maintained. The overall asset allocation was slightly adjusted at the most recent meeting of the ABN AMRO Investment Committee, which directed a small percentage of cash to senior US loans. Within equity sectors, investors are also advised to take some profits in their exposure to information technology (IT) stocks and to increase exposure to utilities.