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Savings and investment
News Release from: Gartmore | Subject: Investment funds
Edited by the Insidemoneytalk Editorial
Team on 02 June 2008
Gartmore News in Brief:
European consumer better equipped to deal with current market conditions than US consumer
"A number of headwinds will affect European companies however the global economy is still growing quite fast" According to Roger Guy and Guillaume Rambourg, co-managers of the Gartmore European Selected Opportunities Fund and the Gartmore SICAV Continental European Fund
This article was originally published on Insidemoneytalk on 25 Oct 2007 at 8.00am (UK)
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Although both the US and Europe are slowing down, this is from a very low base so there is no real impact on global economic growth they say.
The European consumer, like the European economy should be a lot more resilient in the current scenario, if only for the reason that the European consumer has not really been driving the growth over the last six to eight years.
Continental Europeans have been used to living with the issue of unemployment.
Not too long ago the unemployment rate in places like France, Italy, Spain, and Germany was recorded to be around 10%.
With this still at the forefront of European's minds, the savings rates in countries like France and Germany is well above 10%.
Compared to the US, where the savings rate has been negative for the last three years, as US consumers continue just to spend and borrow, and have an average of eight credit cards per household in the US, the situation in Continental Europe is very different.
"Although the economic outlook is widely expected to weaken over the coming months, valuations on the whole remain supportive, while fundamentals are, by and large, still attractive.
Exercising caution and maintaining a long-term perspective will be key to riding out the volatility." The Gartmore European Selected Opportunities Fund and the Gartmore SICAV Continental European Fund are both AAA rated by Standard and Poor's[2] 2.
Standard and Poor rating as at 30/04/08.
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