SIG overweights equities ahead of expected rally

Skandia Investment Group has begun the year overweight equities in the view they will rally throughout 2011, fuelled by growth, low interest rates and favourable valuations.

The group's CIO James Millard says the continuing global economic recovery, which is due to grow at an above trend pace this year, and stronger corporate profits will drive the rally in equities. He says: "Importantly, the recent improvement in the outlook has been led by developed countries such as the US, which themselves are being led by rising consumption and investment. We expect these trends to continue." Interest rates are also likely to remain at very low levels in the developed world, says Millard. As many developed countries have a substantial spare capacity, strong growth s...