Equities rally has further to go, according to Skandia
Skandia Investment Group has predicted the recent equities rally has further to run despite an already record performance during the first quarter.
The group’s view is positive towards emerging market and Latin America equities in particular at a time when global equities have experienced their strongest quarter in more than 10 years.
James Millard, chief investment officer at Skandia, says: “We remain positive on the outlook for equities. However, we have slightly reduced the size of our overweight position following the sharp gains seen over the last few months.
“Economic data has become less positive while the improvement in the peripheral bond markets appears to have stalled.”
He adds: “As a result of this a bout of profit taking could take place in the near term. (article continues below)
“Nonetheless, we think that ongoing economic growth, low interest rates, favourable valuations and an improvement in the eurozone debt crisis will lead to higher equities over the rest of 2012.”
The firm has a negative outlook for UK equities, as well as those of developed Asia Pacific and the US.
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