Prospects for France good but market far from cheap

The French market is offering the seemingly irresistible combination of rising GDP growth and a broad range of benefiting market sectors. Both Hill Samuel and HSBC are bullish on the prospects for the country. Last year GDP grew by 2.7% compared to the European average growth rate of 2.1% and for the 52 weeks to 24 January the CAC 40 index rose by 41.6%, in local currency terms. Adrian Farthing, head of Europe at Hill Samuel Asset Management, believes this year GDP will grow by between 3.5% to 4%. In 2001 the consensus expectation is for a slowdown in growth but Farthing expects it to stay...