Investors cannot rely on Europe's broad economic and market upswings

Economic data in Europe is improving steadily, an expansionary monetary policy is in place and company earnings are set to pick up.

However, investors should focus on strong business models and prospects for individual stocks and sectors, rather than relying on a broad economic and market upswing. Given that economic indicators imply modest GDP growth of, at best, around 1% to 1.5% this year, stock picking remains paramount and the recent market weakness has provided investors with a number of buying opportunities. Despite the strength we have seen in recent months and years, the outlook for healthcare businesses, including biotechnology, looks positive.  In Europe and elsewhere, these companies have profited f...