Equity obstruction

Non-US equity markets are offering good value at current levels but the US market remains overvalued and until this is unwound global equity markets are unlikely to make sustained progress. However, volatility in markets going forward will provide opportunities to trade short-term rallies. Given current uncertainties, particularly over potential war with Iraq and the fact that the US market is valued at above its long-term average, we are maintaining a modest underweight in equities overall. Global equity markets are unlikely to rise sustainably until the overvaluation of the US market is...