Debt is a "rampant problem" for many emerging markets and asset allocators will have to tread carefully in months ahead, warns Canaccord Genuity's global strategist Edward Smith.
Our broad brush expectation for this year is that global equity markets will take a pause for three to six months before resuming an upward climb, resulting in a better second half. Our modelling suggests the current path of tapering could drag on equity market returns by circa 2% to 3% per quarter in 2014. This means earnings growth will need to pick up a lot of the slack. Struggling through We are pleased that the gap between equity prices and levels implied by macroeconomic indicators has narrowed, but the tenacious stagnation of personal incomes combined with headwinds from eme...
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