Schroders cites long-term equity value within relentless recession

Group points to attractive long-term equity valuations but says shoots of recovery are premature

Schroders believes equities look attractive on a long-term valuation basis but says despite signs indicating green shoots of recovery, it is far too early to call the end of the recession. The group's chief economist Keith Wade draws some parallels between the economic crisis of Japan in 1990s and that faced by the UK and the US today. He says during that time, the Japanese authorities eventually injected the equivalent of 30% of GDP into the financial system but it took them five years to do so and this came against a base of a high savings ratio. While the UK and US acted much quick...