Professional Wealth Managementt

By PWM Editor

“Bond markets produced modest returns in 2005 but most equity markets ended the year in good heart. The known risks (inflation, interest rates, oil prices) appear under control. However, equity valuations do not suggest optimism. Equities are on around 13-14 times earnings and yield 2-3 per cent with further earnings and dividend growth forecast for 2006. This appears modest given interest rates of 2-4 per cent and low inflation. So, the steady equity mood appears rational rather than complacent.”

 

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