Outlook optimistic but keep an eye out for potential risks

Since March 2003, Europe has enjoyed three years of rising markets and momentum has so far been maintained despite higher interest rates and rising prices for oil and commodities. However, investors are now beginning to wonder how realistic it is to expect markets to continue rising. So what are the potential threats that could signal an end to the current run of gains? At the end of last year, the message for investors was very positive: valuations were low, gross domestic product (GDP) growth was feeding through to profit growth and there were no signs that bond yields or core inflation...