Fidelity's Rossi: Equities have hit credit crunch levels

Dominic Rossi, CIO of equities at Fidelity, said shares across the globe were now trading back near credit crunch lows, leaving them looking their most attractive for 20 years.

However, Rossi said he does not see equities returning to highs seen earlier this year, and expects continued pressure on the asset class over the next few months. "Equities are cheap. We are now looking at valuations that we have not seen as low many times in past 20 years, apart from in 2008," he said. "Dividend yields are now at 4%, compared to German government bond yields of 2%. None of us have ever seen anything like that before," he added. Rossi expects investors to focus more on the income potential of equity markets rather than capital growth. He urged them to look to comp...