OLIM's Impey: Opportunities in the 'least-favoured' market

Brexit negotiations weighing

Growth globally has improved over the past few years and the economic recovery is now well established.

However, credit creation has played an important role and, in an environment where global valuations remain above historic averages and interest rates are likely to move higher, central banks will have to tread carefully so as not to cause markets to de-rate, despite expectations of further earnings growth.  Consequently, government bond yields in the developed world remain low by historical standards. But they are on the rise in the US and UK, causing inflation concerns for investors.  It should be remembered, however, that some inflation is good for equities (and bad for bonds). ...