Equities market unlikely to improve

Under the current economic scenario it has generally been right to favour equities over bonds. In 2000, however, cash and bonds both performed better than depressed equity markets. Despite the expectation of a slowdown in economic growth, the consensus view is that the rates of growth will not slow sufficiently to risk recession. Accordingly, we need to ask whether 2000, with bonds performing better than equities, was an exception to an otherwise appropriate investment stance, or the start of a necessary correction from the excesses of an extended bull market. Looking at equity markets, ...