Challenges ahead for multi-asset investors

With almost two months of 2013 behind us already, it would appear the bulls are in the ascendancy. Looking back on last year, despite the regular bouts of investor anxiousness and risk aversion, reference to cold, hard data confirms a strong year for equity markets, with a sterling return of 10.6% for global equities in 2012. While we remain optimistic on equities over the medium term, from a shorter term perspective we are concerned at how quickly the ‘great rotation’ has become the consensus theme for 2013. The issue for fundamentally-driven investors is whether earnings growth has ...