Quoted firms in good position to win share in declining economy

ON EUROPE

JAIME RAMOS MARTIN, manager of the European Equity Growth fund at Standard Life Investments on Europe

After a better-than-expected reporting season and some sectors near peak margins, one would have expected the European equity market to be up in 2010. The reality is markets are slightly down: fears over GDP growth are behind this. While maybe right, there are issues to consider before subscribing to a negative view. How relevant is European GDP growth to the outlook of quoted European companies? Most of the quoted firms have better balance sheets and better access to non-bank financing, putting them in a good position to win market share in a stagnant or declining economy. Also, quot...