Barings predicts bear pressure on equity prices

Percival Stanion, head of asset allocation at Baring Asset Management says there could be a short-term move towards technology stocks and Japanese equities as consumer confidence has returned in both the US and Japanese markets. That said, Stanion suggests “equity risk premia are very high by historic standards on current earnings assumptions” and should they be challenged by further rises in commodity prices or an increase in labour, there is the possibility of pressure on stockmarkets and a shift downwards for share values. More specifically, he suggests a predicted US interest rise by ...