Fund manager's comment/Tom Elliot
Despite liquidity injections, the global economy is unlikely to recover until earnings expectations improve. History shows that eventually, falling interest rates will trigger a sustained rally in equities, but how long do we have to wait in this cycle? In May, the subdued behaviour of equity markets since the April rally suggests that investors are not yet convinced that the factors behind the very weak markets in the first quarter have gone away. This was despite another 50bp cut from the Federal Reserve, and the potential for further reductions, and a belated 25bp cut from both the Eu...
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