Bright future for food equities
Food and beverage equities are expected to post double-digit growth in 2011
Food and beverage equities are expected to post double-digit growth in 2011
Equity valuations remain undemanding and are much more attractive than bonds. The corporate world has a much better balance sheet than Western sovereign nations and households,” it said in its 2011 Global Macro and Multi-Asset Outlook report/
“Cost cutting and a stronger-than-expected revenue in 2010 has driven very strong profit growth. These strong results have led to 2011 forecasts rising significantly,” the report by Ana Armstrong and Patrick Armstrong said.
Distinction said companies involved in food products and high-end branded luxury goods will continue to exhibit “tremendous” growth, while infrastructure will remain a major theme for capital allocation by pension funds.
“The stability of earnings and high yield from infrastructure companies is every attractive, and we expect earnings will grow in excess of inflation for the next decade,” the report said. It gave no details on specific stocks.
