Why investors should brace for second quarter sell-off

Architas CIO Caspar Rock has predicted 2012 will be another "bumpy year" with rising equity markets until the second quarter, when there could be another sell-off.

Rock said he is more or less neutral on equities for this reason but adds expectations are much lower than last year so there may be some upside. "2012 is going to be another bumpy year but there are reasons to be less gloomy - the US economy is growing, which is a positive pointer, the eurozone crisis will run along but we are working towards a solution and valuations are relatively cheap," he said. "If we see a pick-up in the US property market and a soft landing in China, we should see signs of greater confidence in the markets, particularly with high levels of cash in portfolios."...