The third year of recovery

Gavin Launder, fund manager of the L&G Investments European Absolute Return fund, discusses whether a return to trend is sufficient for this large and diverse market.

The third year of recovery stretches out before us, with many opportunities but, perhaps, even more challenges. The equity markets have had a good run since the summer of last year and, near term, feel as if they should be due a correction. Whether that happens or not, the European equity markets are experiencing a relatively extreme period of sector rotation often associated with turning points in the market. Looking at the challenges ahead and the trends impacting investment decisions globally, as well as the valuation of the market, it does not appear as if there should be a major cha...