Threadneedle boosts financials on continued rally optimism

Threadneedle CIO, Sarah Arkle, has raised financials to an overweight in her global sector views, and is optimistic on a continued rally in equities.

Arcle says lending spreads in traditional banking are very healthy and with the availability of cheap finance, banks are able to deploy cash into markets with good returns. "Recent comments from the US Federal Reserve have made it clear the current accommodative policy will be maintained for at least the next six months," says Arcle. "This has effectively postponed the problem investors in risk assets will eventually need to face, and provides the scope for further progress in markets." Arcle also says indications from the UK life and pensions industry showing allocation moves away...