Stocks remain on track despite volatile markets

equities

Investors need not be deterred by the current uncertainty in the markets as it reflects a transitional phase rather than a deterioration in overall fundamentals or corporate earnings

It is now almost a year since global equity markets began a period of strong performance. But because it started from a point of extreme pessimism, in the middle of the Iraq conflict, many investors missed at least the initial stages of the rally. The question being asked now is: "Is it too late to buy?" The equity rally from last March was driven mainly by excess liquidity moving into financial assets while economies have been depressed. Now that economic conditions are beginning to recover, some of that liquidity is being diverted into the real economy. Consequently we are seeing a per...