Aviva's Fitzgerald: Equity valuations look stretched

Peter Fitzgerald, head of multi-asset at Aviva Investors, analyses the growth prospects for developed and emerging markets and the impact of future central bank actions.

Global GDP rose by about 3.3% last year (as it did in 2012 and 2013) and despite the fact a similar expansion is expected this year, growth in the developed world has been notably weaker than in the past, especially since the financial crisis. Upswings typically tend to be proportionate to the preceding downturn, but the legacy of the financial crisis continues to restrain economic progress.  Meanwhile, inflation is set to remain extremely low, with the disinflationary impact of ample spare capacity being magnified by the collapse in oil prices. This is an unequivocal boost to glob...