Investors have reason to be reassured

Even after two years of strong equity performance, investors still see fundamental attractions from owning equities, while also being well aware of the downside risks. Here we examine a number of important drivers that, on balance, should reassure global investors about the prospects for many equity markets. The key driver is profits, reflecting a solid economic environment during this more mature phase of the business cycle. We anticipate trend or 'trend-plus' economic growth this year, which together with further corporate restructuring should allow double-digit earnings growth to be ac...