Chris Watling, Director Longview Economics, analyses the prospects for equities in both the short, medium and long term. Investors should have opportunities to profit from a cyclical equity bull market over the next couple of years but the asset class is likely to suffer during the forthcoming decade not least because of the anticipated strength of commodities.
Transcript Extract:
The secular Western equity bear market that began in 2000 persists and in our view, could easily persist for another decade. So cyclically, in the near term, over the next two or three years, the outlook for equities is positive in the West in contrast to the long-term secular trend and the reason we say that is because, in our view, the global economic expansion will persist.
Yes, the macro is challenging at the moment as is typical of phase two of a stylised cyclical bull market, the consolidation phase, when we consolidate the gains from phase one from 2009. It's typical, in that case, for the macro to go flat, for leading economic indicators to go flat, for ISM to be soft, for employment data to slow and so on.....
