Gradual shift from bonds to equities

We have reached that stage in the cycle when interest rates could be cut again but the downside is limited. Economic growth is likely to continue during the rest of the year but is also likely to be relatively subdued. The emphasis has most probably changed from bonds to equities and that certainly now is the view being put forward by the majority of commentators. We would not disagree in overall terms. There has been much talk recently about the possibility of deflation, but as far as the UK and the US are concerned, we think this is unlikely. Equally, as growth picks up we think in...