Fund manager's comment/Jonathan Arthur
We have been bullish since the third quarter of 2000, when we moved into an overweight equities position versus bonds. Although subsequent equity movements meant that performance suffered, we still believe that the underlying fundamentals are sound. Recent weakness in the equity markets was caused by the dramatic decline in profit expectations. Three quarters ago, the consensus 2001 earnings growth expectation for world equities (and for technology stocks) was 15%. Overall profit expectation is now 0% and continues to fall. The second quarter of the year saw a bounce in marke...
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