Economics: Investors favour equities despite market correction

While many commentators called May's market correction a re-pricing of risk spurred by a sudden incr...

While many commentators called May’s market correction a re-pricing of risk spurred by a sudden increase in risk aversion, Axel Botte, strategist at Axa Investment Managers, suggests there are still plenty opportunities to be found in equity markets. “In spring, a sudden rise in investor risk aversion resulted in a general correction in world equity prices,” he says. “We were among the commentators calling the correction a re-pricing of risk and the rise in equity risk premiums and implied volatility indices certainly hinted at increased perceived equity risk.“ However, European equity...