Train: Why it may be time to ignore the 'macro-gloomsters'

2015 biggest ever year for M&A

Nick Train, manager of the Finsbury Growth & Income trust, argues investors should start listening to what businesses are saying about opportunities for growth, following a record year for M&A activity.

2015 was the biggest year ever for global M&A. There was over $5.6trn of deals in 2015, struck at an average premium of 24%. This is up 27% on 2014, and more than 16% over the previous peak year of 2007. So far in 2016 there have already been circa 1,500 deals announced amounting to $120bn. Meanwhile, it is commonly held that equity markets are expensive and afflicted by numerous macro-economic problems. But someone seems to have forgotten to tell companies they should be worried. My advice is to listen to what business is saying about its opportunities for growth and the strategic va...