Rensburg's Morton warns of equity market correction

Colin Morton, a large-cap specialist at Rensburg, has warned UK equity markets could reach dangerously high levels before prices see a correction.

The manager says the market is reaching a peak as investors become too optimistic about the prospects for economic recovery. Morton says: “With a market like this, where it is liquidity and momentum driven, there is always a risk markets are going a lot further than you expect. “When equities start getting to pretty stretched levels, you [become] wary. You get nervous people have forgotten the financials crisis.” Morton points out the mid-cap index is already within 300 points of doubling where it was 18 months ago. “My concern is there are still a lot of hurdles to get over, bu...