Asset Allocators' Soapbox: are we heading for an equities bull run?

Record low interest rates, coupled with inflation still running above the 2% Bank of England target, is forcing investors to take on more risk merely to preserve capital value in real terms. UK 10-year gilt yields continue to reach new lows;. at the time of writing they are comfortably below 1.5%. With such poor value on offer, equities are a natural alternative – particularly given the superior dividend yields available. Yet investors are still reluctant to fully embrace equities. Much of this sentiment could arguably be attributed to the negative real returns for equities in the ...