Equities will start to make progress

ON ASSET ALLOCATION

Dalton Strategic Partnership's Rupert Caldecott explains why an unsettling period for equities is set to end.

The first half of 2011 was full of incident: political turmoil in parts of North Africa and the Middle East; booming commodity prices and then a sharp correction; the Japanese tsunami. It was also full of uncertainty: the eurozone peripheral debt crisis deepened; investors continued to debate the end of QE2 and the effects of continuing Chinese tightening. Currencies showed few sustained trends. ‘Risk on’ and ‘risk off’ continued to alternate. In view of all the above we have candidly been surprised firstly that we made only one major asset allocation change in the first half, buying ...