The positive factors that have supported equities since the fourth quarter of last year are expected to continue. This is in line with a belief that the expansion phase of the business cycle is not diminishing, and, instead, we are seeing one of the longest periods of uninterrupted US growth since the end of World War II.
In this environment, ABN AMRO continues to favour stocks over bonds. Within alternative investments, real estate is favoured, while a neutral stance is taken to hedge funds and there is no position in commodities. A large reserve of cash is ready to be deployed as opportunities arise.
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