Balance sheets appear to be getting back into shape

equities

After strong equity returns in 2003 the outlook for 2004 is not so positive but there are still reasons for optimism as economic growth picks up

After three years of suffering, 2003 can be characterised as the recovery year for economies and stock markets. Investors' appetite for risk rose steadily following a successful conclusion to conflict in Iraq and better economic data. This allowed a re-rating of equities that compared very favourably with the decline in bond prices during the year. While 2004 is unlikely to see the stock market performing as well as it has over the past nine months, the environment for equity investing does appear to be much better. The economic backdrop is slowly improving for the UK economy and the wor...