Managers moving from equities to fixed interest

With global growth inevitably slowing next year, fund management houses are mixed on the outlook for...

With global growth inevitably slowing next year, fund management houses are mixed on the outlook for 2005. The world economy delivered its strongest performance in 20 years over 2004, but much of the fiscal stimulus that created this year's growth is expected to disappear in 2005 and weak fundamentals underlying Anglo-Saxon economies are likely to be exposed, fund managers believe. Higher commodity prices are also likely to squeeze margins, and put pressure on earnings. Peter Hensman, global strategist at Newton, notes: "The recent re-election of George W Bush as US president has give...