Ashton Bradbury, head of equities at Old Mutual Asset Managers (UK), asks how fearful should we be about the long term impact of the sovereign debt crisis?
Equity market volatility in 2010 has been caused by two conflicting themes competing for investors’ attention. On the one hand a set of broad brush macro concerns ranging from Chinese policy tightening to tighter banking regulation and most recently eurozone sovereign debt fears continue to periodically unnerve financial markets. In contrast, current economic data remains strong, company results have been at least up to best expectations and the UK market trades on less than 10 times forward earnings. When investors focus on current economic and company data, markets rally; when their at...
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