Bradbury predicts 15% rise in UK market despite correction

Market volatility will increase over the next few months as investors begin to take profits, according to Old Mutual's Aston Bradbury, but he still expects the UK market to rise 10% to 15% over the next 18 months, even if there is a correction.

The head of equities said: “I think a pull-back is inevitable and we are vulnerable to losing a few percentage points for nothing more than profit taking after a healthy few months in the equity markets. “However, over the next 12-18 months we are optimistic and prepared to look through any short-term setbacks.” Stronger economic growth will begin to come through in the UK’s Q1 figures, he added, after a disappointing Q4 in 2010, leaving the MPC able to raise interest rates modestly from Q2 onwards to stave off above-target inflation. Bradbury said there will be no need for more QE...