Why we are overweight US and Asian equities

ON AA

In comparison to the fears that dominated markets in 2011 investors perhaps have more reason for cautious optimism.

The state of so many developed economies around the world remains fragile as their debt-hobbled governments have little scope to spend to encourage growth. However central banks have, largely, stepped into the breach, using the tools at their disposal to counter the worst fears. In this regard, albeit a little late in the day, the European Central Bank’s announcement in December of cheaper funding courtesy of the LTRO brought welcome buoyancy to markets. No doubt much of this additional liquidity will be soaked up by the banks to buy them time to improve the quality of their balance s...