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Global equities opportunities already passed
Investors may already have missed their opportunity to benefit from the upturn in global equities, according to Mercer.
The head of Mercer’s dynamic asset allocation team in Australia and New Zealand, David Stuart, said he believed that while global equities still offered reasonable value, the best buying opportunities might have already passed.
“Many market commentators are jumping on the equity bandwagon now that the market rally has established itself,” Stuart said. “However, it is the truly contrarian investors, who followed our advice and bought equities when everyone else was hoarding cash, who will have extracted real value from the recent market turmoil.”
He said while prices were still modestly cheap, markets were on the road to recovery and most developed equity markets were currently sitting at levels 30 to 40 per cent higher than the lows reached in March, while in emerging markets the growth had been even stronger.
Stuart was less moved by Australian equities, saying while Mercer had maintained a fair value rating on Australian equities, it was concerned that on a relative basis the Australian equity market valuation looked a little stretched.
AUTHOR
Mike Taylor
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