UK equity price inflation to be viewed with caution

Rumours of corporate takeovers may be inflating UK equity prices but investors should not rush in, s...

Rumours of corporate takeovers may be inflating UK equity prices but investors should not rush in, says Errol Francis, UK equity portfolio manager at Credit Suisse. "On a value basis, the market looks fine and forecasts should be met," he said. "But prices might have gone a bit too fast. One of the factors behind this is the prospect of takeovers, both real and rumoured, in the market, with new rumours every day." Francis' view is echoed by Martin Cobb, investment manager at Franklin Templeton. "I think there is a definite inflation in market prices because people are backing the takeov...