Eurozone leaders have will to create more stable model

ON UK GROWTH

With the investor mindset currently one of worst-case scenario, we think valuations are attractive, as corporates are likely to survive the waves of volatility permeating the market.

The present climate means companies are braced for another catastrophe, so will likely survive a more ‘normal’ recession. Cashflows and balance sheets are stronger than three years ago. Management are more focused on returns, while M&A activity has been subdued, as shareholders put stability over growth by corporate activity. Although markets, specifically the financial sector, are a scapegoat for the current economic uncertainty, by forcing governments to act they may help usher in a more stable economic model. As promising as this sounds, the UK will continue to be buffeted by th...