Invesco's Barnett: Be vigilant over earnings visibility

In the week that Tesco admitted it had over-stated its first half results by £250mn, Invesco Perpetual's Mark Barnett warns investors should be especially vigilant over visibility of earnings.

In the absence of a sharp increase in company profits and dividend growth, the broader market is being fairly valued in absolute terms. That said, relative to cash and bonds, UK equities are still offering attractive value. We see the key risks as being the phasing out of quantitative easing (QE), rising interest rates and demanding equity valuations. Earnings Since equity valuations have risen in the last few years, this has resulted in high expectations of profit growth, which leaves greater scope for disappointment should such expectations not be met. As a result, I remain es...