European equities are learning to withstand the global headwinds

European equities still offer compelling investment opportunities despite Eurozone economies being a...

European equities still offer compelling investment opportunities despite Eurozone economies being adversely affected by the strong euro, the fallout from the US recession and high food and energy prices. Generally, we have been adding positions in companies that can better stand the global headwinds, exhibit pricing power to offset rising input costs and generate cash earnings irrespective of the economic cycle. Conversely, we are trimming exposure to more cyclical companies that would suffer most in a more protracted economic downturn. The euro's current strength against sterling and ...