“As dividend yields in many cases exceed the yields on core sovereign bonds, there is still fairly little risk of a sharp stock market correction, and a constructive approach to equity exposure remains appropriate,” writes Carmignac Gestion Managing Director Didier Saint-Georges in a note. “However, our core portfolio still gives priority to ‘maximum-quality’ names. We feel they are poised for further outperformance in the current period of both structurally and cyclically low growth, while monetary policy is approaching the outer limit of what it can accomplish.”.
This article provided by Bloomberg News.