Conditions right for cyclical upturn

BY Jonathan Arthur, manager of the Deutsche Managed Portfolio Fund After a concerted recovery in the fourth quarter of 2001 equities have made a sluggish start to 2002. Despite improving macroeconomic news and positive sentiment on both sides of the Atlantic, investor appetite for equities remains subdued. Concerns over accounting practices, increased equity issuance and the effects of FRS17 have all suppressed markets. There have been some exceptions however, such as the impressive performance of emerging markets and a recent rally in Japan. On the whole, we remain cautious...