The medium-term outlook for global equities remains positive. This view is driven by the persuasive macro background, as discussed in this article.
Today, as we enter 2014, investors seem to be confident about the prospects for another strong year in equities. Many of the conditions necessary for a continuation of the positive market environment we have experienced since late 2011 remain in place, but is this confidence misplaced?
Global equity markets are down some 8% since the late-May peak, with Japan and Emerging Markets down 17% and 11% respectively.