Equities still no place for faint-hearted investors

US equities will remain volatile in the coming months and valuations, though pegged back, could have further to fall as investors fret over high multiples and negative corporate news. Fund manager at Baring Asset Management, Chris Lees, says the fundamental issue is simply the valuation of the market. 'US equities are cheaper than they were, at about 25 times earnings, but this is still expensive compared to this point in previous cycles, where 12 to 15 times was more usual,' he says. 'We do not believe the market will revert to that level, as interest rates remain much lower ...