Global equity markets to outperform bonds in 2002

Equities now look attractive versus bonds and should outperform in 2002, despite the continued lack of visibility surrounding corporate earnings. The recovery in global equity markets since the trough of 21 September has been cyclical-led and not without volatility, but for the first time in over a year, the bulls are beginning to point to equities as the most likely top-performing asset class of 2002. Stephen Potter, analyst at Goldman Sachs, says although equities are still trading at levels pricing in potentially unsustainable earnings growth, they are now at reasonable value comp...