Investors are staying on the sidelines untill clarity is obtained

In an industry that is replete with contrasting views, the current spectrum of opinion on the future shape of the economic and investment landscape is truly disparate.

Has global growth stabilised, or are the ‘green shoots’ of recovery purely being supported by inventory restocking? Does inflation or deflation represent the biggest danger moving forward? Should one target cyclical stocks, or do defensive areas of the stock market offer greater opportunity? There appear more questions than answers at present and investors would be forgiven for electing to stay on the sidelines until further clarity is provided. Indeed, it is apparent this is exactly what many investors (both private and professional) are doing, with cash levels remaining high because of...