Equities set to outperform bonds and moneymarkets in 2011

ON EUROPE

Aviva Investors' John Botham believes equities will have a successful 12 months despite expectations of more volatility.

The major industrialised nations of Northern Europe and Scandinavia are growing at a robust pace, fuelled in part by the emerging market-led global economic recovery. By contrast, the economies of Southern Europe and Ireland remain depressed as the first wave of austerity measures designed to restore their fiscal credibility and competitiveness begins to bite. This has helped to facilitate the emergence of a two speed market in Europe, with those stocks and sectors (autos, luxury goods, chemicals and engineering) exposed to Northern Europe and exports performing remarkably well and se...