After a rip-roaring recovery, are global equities still a good buy?
A recent monthly ‘Fund manager survey’ carried out by Bank of America Merrill Lynch suggests that most institutional asset managers now do not anticipate a recession until the second half of 2020 or beyond. Only 6% of investors expected a global economic recession this year. However, whilst a further deceleration in global growth is expected through 2019 and into 2020, this is not to say that growth will be poor, but rather that it is unlikely to replicate the stellar performance of the past few years.
That said, data showing slowing economic growth eases bond markets’ worries about an increase in interest rates. In turn, lower bond yields support equities. And whilst we have seen a rip-roaring recovery in global equities from the miserable end of last year, some would say global equity market valuations still look very reasonable despite the recent jump in prices.
Not surprisingly, we see that Global Equities continues to be one of the most searched-on asset classes in CAMRADATA Live this year…Read More