Global weekly: Strong fundamentals support markets
Equity and bond markets are stabilising. Macroeconomic data and market fundamentals continue to be strong, while political risks have lessened.
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Investment Strategy: A more pro-cyclical stance in equities
In light of the economic upturn and abating political risks in Europe, we advocate a regional shift to European equities, at the expense of US equities. At a sector level, we suggest investors to consider switching from energy to industrials, as we are taking an even more pronounced pro-cyclical equity stance.
Global weekly: Bump in the road
Equity markets retreated this week, with US stocks on Tuesday plunging the most since October. Investors sought refuge in bonds, pushing Treasury yields lower.
Investment Strategy: Still a preference for stocks
The global economy and equity markets in general continue to be supported by a number of positive factors. ABN AMRO’s preference for stocks over bonds remains in place.
Global weekly: The Dutch and the Fed
The US Federal Reserve rate hike and the positive outcome of Dutch elections were hot topics this week. Financial markets reacted positively but muted.
Triodos MeesPierson joint venture to merge into parent companies
ABN AMRO MeesPierson and Triodos Bank have announced plans to terminate the Triodos MeesPierson (TMP) joint venture. Both parties have agreed to end the joint venture effective 1 January 2018, subject to approval by the supervisory authorities, and carry on TMP’s operations within their own organisations. Formed in 2005, the joint venture was intended exclusively as a vehicle for providing sustainable asset management to clients of ABN AMRO MeesPierson and Triodos.
Change in the leadership of Bethmann Bank
There will be a change in the top management of Bethmann Bank: Horst Schmidt, 51, plans to leave the private bank in the summer after serving as its chairman for ten years. In addition, Mr Schmidt has decided to resign from ABN AMRO, where he held high-ranking positions for 13 years. ABN AMRO intends to announce who will succeed Horst Schmidt in the near future.
Global weekly: Ready for take-off
The US labour market reported an impressive monthly gain, in line with the US Federal Reserve’s expectations. Now, financial markets have fully priced in a US rate hike in March.
Global weekly: Who was that man?
President Donald Trump was described as “surprisingly presidential” by many news organisations after his speech to Congress this week. Markets liked what they saw.
Investment Strategy: Taking profits and raising cash for the future
After an 11% run-up in global equity markets over the last three months, ABN AMRO suggests that clients consider taking some profits in their stock portfolios. The ABN AMRO Investment Committee also suggests selling commodity positions and shifting positions in European high-yield bonds to US high-yield bonds.