Macro issues still driving force behind equity valuations

ON UK GROWTH

Macro issues have dominated equity markets, driving down valuations. But fundamentals remain strong, with many companies continuing to prosper The past year or so has been a very difficult period.

Markets have been binary, with risk on in one period and risk off in the next, and you have needed to be very defensive in the risk off period or very aggressively positioned in the risk on period. It has been challenging for an investor trying to find good fundamental stocks. If we are to move away from that, we need clarity around certain key issues, particularly eurozone sovereign debt. But when we start to see resolutions to some of these problems, economic activity and company fundamentals should become more important to making decisions about stocks. Our strategy has been to kee...