Global mergers and acquisitions (‘M&A’) activity looks set to accelerate in 2014 and mid-cap equities are best placed to benefit.
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?
Pension changes for 2014 as outlined in yesterday’s Budget speech suggest that the new pensions taxation regime is now settling down after a period of much uncertainty since the concept of a capped pension fund threshold was first introduced in December 2005.
Global equity markets are down some 8% since the late-May peak, with Japan and Emerging Markets down 17% and 11% respectively.