Slowdown in global markets

Global markets are unlikely to rise further than 15% above current levels, leading to an era of range-trading and outperformance by active fund managers, according to SchroderSalomonSmithBarney. The group believes there is limited scope for a re-rating of world stock markets and that over the medium-term they are likely to trade around a trend line more closely associated to long-term earnings growth than they have over the past decade. Although this may hamper returns for index funds, which would see performance limited by small market rises, there is increased relative opportunity fo...