Henderson's Bennett: Earnings forecasts are 'fairy dust'

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Consensus opinions over the strength of the US and Chinese economies should be viewed with suspicion, according to Henderson's John Bennett, who has compared analyst forecasts to "fairy dust".

Bennett (pictured), head of European equities at Henderson and manager of the £143m Henderson European Focus trust, said he is cautious in the short-term and remains skeptical of the view that the US is recovering and China is rebounding. His short-term fears are largely a factor of the strong rally seen in equities since the lows in June last year; the manager sees the potential for "equity markets around the globe to be tested" in the coming weeks. "We tend not to share the consensus view that the US economy is in good fettle nor that China will recover strongly: excessive leverage ...

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