Investment Strategy: Fundamentals still supportive for taking risk

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In its meeting Thursday, ABN AMRO decided to hold onto its current view. This view consists of a moderate preference for equity, with bonds still out of favour, and a neutral stance towards commodities, real estate and hedge funds.

We remain comfortable with our view as it strikes a balance between strong macroeconomic fundamentals and potential risks. With low interest rates, low inflation and accelerating global growth, the investment environment remains favourable for risky assets, such as equity and corporate credits. The potential risks we see, are an abrupt slowdown of the Chinese economy, stronger-than-expected inflation and a slowdown in the earnings momentum. We keep them in focus as these risks have the ability to cause a considerable price correction due to the expensiveness of assets. Also, we deem those risks unlikely to occur.
 
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