Equities Remain Most Compelling Choice for Investors

With markets now significantly higher, upside has diminished but, US recession risk is low, tail risks have eased in China and, while the cycle is ageing, it probably has further to run

Andy Brunner 20 November, 2015 | 6:26AM
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Following the first genuine correction in over four years, equity markets enjoyed a sizeable and rapid rebound in October – with the MSCI World Equity index recording a 7.5% bounce – that has continued into early November.

Year to date, however, UK commercial property remains the best performer with an estimated 11.5% gain

Indeed, from September 29 to November 4 the World index surged nearly 11%, with the US, Europe, emerging markets and Asia Pacific equities recouping all the losses since the correction began in earnest on August 17. Throughout equity markets it has tended to be those indices that had fallen furthest that bounced the most with the German DAX and Japanese TOPIX indices leading the way in the main markets and China in emerging markets, whilst large cap cyclicals outperformed in most areas, especially energy and basic materials.

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About Author

Andy Brunner

Andy Brunner  is Head of Investment Strategy, Morningstar UK