Low bond and interest rates allow equities to climb ‘wall of worry'

ON ASSET ALLOCATION

RUPERT WATSON, asset allocation specialist at Skandia Investment Group on Asset Allocation

We expect equities to rally over the remainder of the year and believe the rally will be driven by ongoing economic growth, attractive valuations and low interest rates in the developed world.  We expect emerging markets to outperform developed markets, with the Asia Pacific region leading the way. There have been some signs the global economy is slowing, especially in the manufacturing sector. While manufacturing is likely to slow further, the global economy should continue to perform well, boosted by low interest rates and a corporate sector flush with cash. While much attention has fo...