Markets continue to fret about a cyclical downturn

ON ASSET ALLOCATION

Insight's Matthew Merritt discusses how managers with the most flexible mandate will benefit in volatile markets.

We continue to expect the global economic recovery to be sub-par. Debt repayment, in both the corporate and household sectors is a depressant on consumer demand, with both the availability of and appetite for credit remaining limited. Furthermore, constraints on sovereign debt limit the ability of governments to provide additional stimuli, although interest rates in the UK and US look set to remain low for the foreseeable future. The ongoing debt crisis in mainland Europe is likely to cast a shadow on the investment outlook for some time. It is unclear whether peripheral markets ca...