Equities sweet spot is having gearing effect on profit margins

Assets are still attractively valued while earnings are keeping pace with prices and interest rates remain historically low.

Equities are a sweet spot of low interest rates, growing end demand and reduced costs, which has a desirable operational gearing effect on company profit margins.  The authorities have indicated that interest rates are likely to stay low for an indeterminate length of time and, until this changes or the bond markets back up of its own accord, equities look set to continue their move forwards. In the short-term, there of course exists the possibility of continued arbitrary movements in the market based on daily news.  Nevertheless, fundamentally policy is working as it should and valuatio...