Guy Monson, CIO of Sarasin & Partners, has outlined a number of key risks which could impact rising global equity markets as we head into 2014, amid the well-flagged move by the US central bank to wind down QE.
Monson (pictured), a veteran investor who has managed a number of global equity portfolios at the group, said alongside the impact of the withdrawal of QE - the introduction of which boosted asset prices significantly - issues in Europe and emerging markets could hamper equities. While his base case is for a further appreciation of equity markets as investors switch from bonds - which are seeing prices come down and yields rise thanks to central bank action - he said three areas were causing him some concern. "Dividend growth, strong balance sheets and a modest revival in mergers and ...
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