Fidelity's Shah warns equities at risk of 'significant' sell-off

Fidelity Special Situations fund manager Sanjeev Shah has warned investors that equities are at risk of a significant pullback this year as valuations approach multi-year highs.

Shah, whose Special Situations fund is top quartile in the IMA UK All Companies sector over one year, said global equity markets are likely to retrench later in 2013. "Valuations are not as attractive as at the end of 2011, and although markets may climb the wall of worry for now, there will be a significant, and drawn out, period of consolidation in 2013," he said. Developed market equities in particular have risen sharply since the lows seen last summer. The FTSE 100 is now approaching its five-year high of 6,376, having climbed 20% since the low point last June to stand at 6,300...