Managers quietly upbeat about market for equities

Alastair Mundy, manager of the Cautious Managed fund at Investec, is quietly optimistic on the outlo...

Alastair Mundy, manager of the Cautious Managed fund at Investec, is quietly optimistic on the outlook for UK equities, which he says look cheap relative to bonds. Mundy says: "While we understand the nervousness of many investors relating to terrorism, soft economic data, high levels of personal debt in the UK and US and the large US trade deficit, we feel much of this is discounted in the UK market currently and that, relative to bonds, equities look cheap." He says another reason for investor concern is that US equities continue to be expensive and that, if US markets are not going to...