UK economy looking good, strong China and potential in EMs

Fund managers give their views on the key issues impacting global asset classes and outline how they are positioning portfolios.

  Giles Hargreave on UK Growth The cost of money will be fundamental to the overall performance of UK equities this year. If interest rates remain close to where they are for several years, as some believe they will, then the environment for equities is likely to remain a positive one. Negligible interest rates on cash deposits encourage people to look elsewhere for a return and equities benefit from that. Cheap money also means companies can borrow relatively inexpensively to make acquisitions that will significantly enhance earnings. The opportunity such deals present was demon...