Palthe talks up growth stocks prospects

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GROWTH stocks will benefit from short-term investor caution and a medium term slowdown in the European economy, according to Arjan Palthe, senior portfolio manager of ABN AMRO's Europe Equity Growth fund.

“When markets rebound, we believe that people will first buy the larger, less risky stocks because they will still be cautious about the markets. "In that climate, stocks of quality companies with a proven track record of delivering profit growth are likely to outperform,” he said. Palthe also considers growth stocks to be attractive in the medium term, and expects investors to turn to them as the economic environment becomes more challenging and European profit growth starts to slow. “In the more cautious economic environment ahead, we expect investors to seek out companies with a b...

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