Barings positive on equities despite short-term pressure

Barings' Percival Stanion remains positive on the long-term prospects for equities but has no plans to increase allocation in the near-term on valuation grounds.

Stanion, who heads up the Barings' strategic policy group, says concerns over Chinese growth and the crisis in Greece have been the catalyst for significant profit taking in the markets, but adds equities and corporate bonds are no longer cheap after last year's sharp rally. With the prospect of government support being withdrawn, Stanion believes global markets need more visibility on the resilience of growth to push equity valuations higher. "We are positive on equities for the long term, but see no reason to add in the short term," Stanion says. "We have become slightly less pos...