Investment Outlook: Towards new highs in global equities

The second quarter has seen volatile financial markets, and a significant correction especially in European stock markets. Nevertheless, it has been advantageous to maintain an overweight of equities relative to bonds, as the largest movement in the previous months have occurred in the bond markets. On both sides of the Atlantic investors have downplayed fears of deflation, which seems both justified and logical, but the price has been higher interest rates in the last few months. Real interest rates still have to rise further, but the increase will be checked by dovish central banks. I expect the equity markets to break at higher levels in the third quarter and that on both sides of the Atlantic will rise to new record highs.

from Teis Knuthsen - Authored content http://ift.tt/1LzRqQX