Stock-picking for 2016
Our strategists have recently reinforced the defensive bias in the equity portfolio. Sector allocation
is skewed to the most obvious beneficiaries of ECB policy and low euro-area yields. Our top picks
offer 1) high exposure to Europe with some self-help (Europcar), 2) a play on the improvement in
the French construction sector (Eiffage), 3) a haven with a boost from collapsing oil prices (Rubis),
4) a secular growth story (Showroomprive) and 5) a value play that has re-based market
expectations and benefits from speculative appeal (Saft). On the negative side, we would avoid
Gemalto and Vallourec.