This website use cookies and similar technologies to improve the site and to provide customised content and advertising. By using this site, you agree to this use. To learn more, including how to change your cookie settings, please view our Cookie Policy
Pocketmags Digital Magazines
Pocketmags Digital Magazines
   You are currently viewing the United Kingdom version of the site.
Would you like to switch to your local site?
Digital Subscriptions > > HORNS OF A DILEMMA


Rory McPherson, head of investment strategy at Psigma, says despite positive economic indicators, uncertainty over US interest rates, political risk and high valuations are casting shade on global equities

Equity markets currently present a dilemma for asset allocators. On the one hand, corporate earnings are buoyant, political risk in the eurozone is diminishing and economies worldwide are in the first synchronised recovery since the turn of the decade.

These circumstances should favour an overweight position in economically sensitive assets such as equities, according to Rory McPherson, head of investment strategy at Psigma. But on the other hand, there is the thorny issue of over-inflated valuations, which should act as a warning to the markets to exercise caution.

Psigma’s portfolios reflect McPherson’s concerns. They appear quite defensive with plenty of cash, following a recent bout of profit-taking that sought to refocus the fund on high-conviction assets and away from “lala land” valuations.

Purchase options below
Find the complete article and many more in this issue of -
If you own the issue, Login to read the full article now.