Schroders Private Bank: Our three asset class picks for 2013

Schroders Private Bank has highlighted the three areas of the market it expects to outperform this year, pointing to Japan, UK property, and commodities as potential winners.

Robert Farago (pictured), head of asset allocation at Schroders Private Banking, said the outlook for the world economy looks brighter, despite some uncertainty remaining over the stability of financial markets. “For the first time in three years, there is a realistic possibility of upside surprises,” he said. Generally, 2013 promises to be a positive environment for equities, said Farago, against a backdrop of stable growth and stable inflation. “The strong performance in 2012 was driven more by valuation increases than earnings, which lowers return expectations. Analyst expectati...