Three reasons developed and EM equities will deliver this year

ON ASSET ALLOCATION

FundQuest UK's Pankaj Shah urges investors not to be derailed by recent world events.

The stronger appetite for risk continued into the first quarter of 2011, only temporarily de-railed by the Middle East upheaval and the Japanese earthquake, tsunami and subsequent nuclear reactor problems. Upward revisions to growth estimates for the US and some European economies due to higher corporate earnings and a more sanguine outlook for the euro were contributing factors. The hope the European sovereign debt crisis may be controlled with the announcement in March of the expansion of the European Financial Stability Facility may have also had some influence on sentiment. Factor...