Positive large-cap outlook tempered by gathering economic headwinds

The Debate

This week, the panel debates as to whether 2006 will be the year for large caps

With many commentators suggesting large caps are due a strong run after years of mid- and small company outperformance, this week's Conjecture examines the outlook for the asset class. Among the issues discussed were the concentration of the FTSE 100, the current share buyback trend and the reliance of many blue chips on earnings from outside the UK. Present at the debate were Mark Lyttleton from Merrill Lynch, Jeremy Smith from Schroders and Bob Morris from HSBC Halbis Partners. What is the outlook for large-caps looking to the future? Mark Lyttleton (ML): I am pretty positive on the...