BlackRock's Graham warns on equity outlook for 2010

BlackRock's Colin Graham is maintaining a short-term bias towards equities in his Balanced Growth Portfolio fund, but warns the asset class could suffer next year.

At 30 June, the £207m fund currently had 48% in UK equities, 26% in overseas equities and 26% in fixed income. Graham says equity markets are currently being propelled by companies reporting better-than expected earnings and margins, along with investor cash coming back to the asset class. “The world has not ended, as many were forecasting just a few short months ago, and the recovery is underway,” Graham says. “In fact, over the short term, the upturn could be the strongest since the end of the Second World War.” Although Graham believes the markets have seen their bottom and t...