Why equities will not take off until bull run in commodities ends

Fidelity Worldwide Investment's global CIO Dominic Rossi said shares will not begin to re-rate until the long-running bull market in commodities ends.

Rossi, (pictured), the well-known equities specialist who joined Fidelity from Gartmore last year, said he cannot envisage stocks re-rating and share prices rising substantially until elevated commodity prices fall back. "Equities are cheap because of volatility," Rossi said. "Volatility is the single biggest enemy of equities today, and we need to see equity market volatility fall before we see a re-rating." Rossi said volatility in markets is climbing, and currently stands above 20% again, well above levels seen in 2007 of between 10% and 15%. He said commodity prices, alongside ...