Nov. 19 - Economic growth in Europe will surprise us positively next year, says Hans Stoter, CIO of ING Investment Management. His forecast: Positive earnings from Europe's firms and a peripheral rebound.
Given all the deflation talk in the eurozone is it time terror. Shift. The focus away from equities back into bonds and cash. I think you're actually the opposite. I think the the Central Bank is clearly. Vigilance towards. Deflation risks. As proven by the the unexpected rate cut. I think that what's -- the victim of many traders by the very low inflation rates for the particularly in peripheral Europe. So I think that based -- really happening deflation is relatively low. We have a loose monetary policy as a result of staff which would benefit it. So the great rotation continues and will continue through -- fourteen. Well we haven't seen really a lot of great rotation yet while some retail out of out of cash into into equities but not really institutions that moves out of bullets into records but this is there will be some movement in these continue -- which they say still went for equities is this the point that these situations -- got on -- this com. What do they don't. Well if they don't we will still have some support from the retail markets. Because I don't think these solutions will be subject. But there are far -- They continue to bibles. If you have significance in this at sensed that liabilities you need to own some bolts and particularly day own. The more credit since the phone's height of the first and Greg comparable to expect you to think like that in. We do see a marginal change to equities mystic particularly the income generating. Actually -- -- -- different structure it. Which which regions you favor and equities next. Focuses on Europe that's number one seconds Japan. The reason for Europeans that we believe that the periphery is on the rebounds. Earnings growth four European companies will -- relief that will be positive. And the economic development might surprise -- -- -- -- Clearly the Fed is for for many needs still the only show in town. How much longer will be -- -- When you see the tape tournament. I -- it difficult to forecast the exec data that they per issue will be a betting man which I'm not I'll be putting it in that in March or April. But I don't think really it matters that much where it is December April or or June. It is the message Ulf. A strong economy that actually can do with outs to such a significance. Easing program while still being very forceful and forward guidance on -- fonts that combination I think we'll be strong enough to. Two avoids a market -- jerk reaction what we saw in May. -- How is -- old way of investing. Changed since the crisis. Yes it has changed to the fact that we. Need to be more nimble and our portfolios. So there's more focus on dynamic -- allocation. And in addition only more illiquid asset classes aren't -- Barack's next lengthened. Because simply the training -- Have increased which don't -- actively trade in and out of deliverables for acceptable and very frequent basis collect money. So you -- you need to be more nimble and need to be more reactive. Immediate. Well it. It is more that you want to be yet proactive you need to be proactive. On changing situations as. As we foresee that to happen. And so have many thanks for joining us that was one view plenty of abuse of course of the Reuters investment summits have available on the platform on demand. -- Acropolis sources.