(Reuters) – Europe’s largest asset manager Amundi Asset Management is telling investors to consider a rotation out of credit and into equities, suggesting possible double-digit earnings growth and limited potential for further easing in financial conditions.
“While the bottom has passed, economies do not seem to be climbing out quickly enough to ensure a quick recovery,” Amundi said in a report received on Wednesday.
“On the other hand, earnings will prove to be more resilient and quick to recover, whereas the picture is more scattered within credit,” Amundi said in a report received on Wednesday.”
It also said it had upped European equities to Neutral, albeit it is expressing the position in derivatives rather than outright positions to maintain an overall cautious stance.
(Reporting by Sujata Rao; editing by Maiya Keidan)
