Dividends are more important than the economy: Fidelity's Morse

COMMENT

Sovereign debt has dropped a couple of notches down the agenda since the start of the third quarter, but to forget about the problems of Europe's largest public deficits completely could be a mistake.

The turning point in market sentiment came when Europe’s banks passed their stress tests with flying colours. By implication, this suggested they could withstand the pressure any economic troubles might put them under in the near future. While I do not doubt the results of the tests, I remain cautious that certain banks in Europe, in particular those with large direct exposure to the most troubled European economies, could still face challenges that become too strong for them to overcome quickly. This is a good example of how macro conditions can impact a business, but evidence sugges...