Fidelity's Greetham: This rally may still have years to run

ON ASSET ALLOCATION

Fidelity director of asset allocation Trevor Greetham on why the scene may be set for a multi-year upswing in developed market equities.

The economic upswing that began in the summer of 2012 has lasted more than a year and there is a very good chance it lasts well into 2014. The US is leading the world expansion with strong business confidence, rising home prices and a resumption in bank lending. Japan’s economy is picking up on all fronts and optimism continues to rise in Europe and the UK. Inflation pressures are muted and no major central bank is likely to tighten policy for at least six months. With corporate earnings growing and liquidity plentiful this is a bullish backdrop for stocks. We have been overweight equ...