Aberdeen's Stout: It is harder to invest now than in 2007

It is harder for equity managers to invest now than in the run up to the financial crisis, according to Bruce Stout, manager of the £1.3bn Murray International trust.

Stout (pictured), a senior manager on the global equities team at Aberdeen Asset Management, said the current market environment presents a particular set of challenges for investors. "Equity valuations were at the same levels in 2007 [as now], but there was a bond alternative. Murray International had 27% in bonds in December 2007 and they were yielding 5%-5.5%," he said. "Now there is no safety in bonds, so it is harder to invest now than in 2007. If you are paying higher and higher prices for equities you had better be sure what you are buying." At the moment, 93% of the trust...