Expect equity volatility in short term

Growth in Europe should come through strongly this year and perhaps even more than expected. Estimates as to GDP growth have been revised upwards to a touch above 3%. Cyclical plays like the steel companies claim they've never had it so good. Fundamentals too remain on track, as do other investment themes. Ageing populations will continue to shift into equities and the corporate restructuring story has barely begun (although proposed tax changes in Germany may cause the sale of non-core assets to be deferred as companies wait in order to raise better prices). The euro seems set to strengt...