Mercer opts for equities and growth assets
David Stuart, Head of Mercer's Dynamic Asset Allocation team in Australia and New Zealand, said despite the shake-up caused by world events, global equity markets had proved resilient.
"With the exception of Japan, which has fallen nearly 10% since our last report in January, major equity markets have delivered positive returns, led by the S&P rising 3.6%. Given the backdrop of the Japanese earthquake, political turmoil in the Middle East and North Africa, resurgence of European debt worries and rising inflation pressures in major developing economies, this is a resilient performance and a promising sign for investors," Stuart said.
"Based on our analysis, and in line with our recommendations last quarter, we are advocating an overweight position in global shares relative to overvalued bonds," he said.
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