Markets may trade sideways for a bit

Fund manager's comment

Equities are at an interesting point now and the good news is that global recovery is well underway....

Equities are at an interesting point now and the good news is that global recovery is well underway. On the other hand, there is a price to pay for growth, and that is higher interest rates. Already in the UK the cycle has turned and undoubtedly there will be more rises to come, it is just a question of how much and when. But even for the domestic market it is arguably US policy that matters most, and Fed actions will play a key part in determining the direction of equity markets around the globe. The case for UK equities rests on a combination of value and earnings growth. The value pro...