Low inflation gives investors more scope

Rick Dentith is head of UK equities at 9research0 at RLAM The past two years have seen significant outperformance by so-called value companies and the discrediting of many of the methods of valuing growth companies. Much of the problem has been caused by the downturn in the economic cycle, which has exposed the fragile market positions of many companies. While we believe that the worst for the global economy has passed, continuing low inflationary conditions mean sales growth will be hard to generate and investors will have to analyse prospective investments with great care. ...