Growth is certainly slowing globally - the risks are not just from the struggling eurozone, but stem from a stronger dollar and flight to safety. The dollar strength tightens liquidity for many EM corporates.
However, growth will not disappear, and businesses that can deliver sustainable growth across the cycle will deserve a greater premium. We expect further polarisation between genuine organic growth businesses, and those that have been flattered by a cyclical upswing. We expect interest rates and global growth to remain low for some time, with the UK in an anaemic recovery. As the remedy will be further money printing and devaluation, we favour businesses earning profits in stronger currencies. It makes sense to look internationally for growth. We like companies with strong growth and ...
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