Analysis of quality key driver of stock selection

The volatility of the past two months experienced not only by US equities but across the world has been interpreted as evidence last year's so-called ‘dash to trash' is nearing an end.

Faced with the potential unwinding of stimulus measures at a time of fragile economic activity, we believe investors will now start to pay greater attention to micro analysis and company fundamentals. In an environment of increasing scrutiny, firms with a superior business model, capital strength and a commitment to value creation are likely to be rewarded with share-price appreciation from hereon. Leaders in their field like Wal-Mart are among those stocks we believe will see a re-rating in share prices. Throughout the events of the past 18 months, Wal-Mart has remained steadfast, conti...