Equity valuations have snapped up to higher levels in rally

Notwithstanding the rallies that many markets have experienced over recent months, the current environment continues to offer a range of opportunities to multi-asset managers.

Equity valuations have snapped up to higher levels in a very rapid rally. While short term we expect an increase in volatility as the recent rally is digested, we still believe equities are attractive. Over the longer term, we expect a combination of factors to push markets higher, in particular: valuations are not demanding, economies are likely to improve, many investors are holding cash or are relatively cautiously placed and deposit rates remain low. Within our portfolios, we have therefore maintained significant weightings in equities. Recently, we have increased the focus on blue-c...