Managers continue to favour equities despite some concern

Fund managers remain overweight equities despite concerns there may be clouds on the horizon. Gregor Logan, joint deputy chief investment officer at New Star Asset Management, says interest rates in the US are unlikely to go down this year, despite previous expectations. Meanwhile, interest rates are rising in Europe and the UK, which is likely to dent equities. In addition, bond yields have risen and now pose more of a threat to the equity market than they have for a while. Logan also says earnings are still demonstrably cheap but valuations have not risen in line with them. He suggest...