Equity bull run set to continue as global economy recovers

The UK equity market has the potential for continued strong returns despite its recent strength.

Achieved earnings are exceeding market expectations and valuations are undemanding and maybe even cheap. Undoubtedly there exist considerable headwinds for the domestic economy but globally things look more positive. We are entering a re-stocking phase of the economic cycle that will generate strong growth but this will give way to more modest growth in developed economies and rather stronger growth in emerging economies, leading to healthy global growth. Confidence in a recovery has grown significantly in recent months both in the UK and US and is observable in many data series. T...