Standard Life Investments have made their predictions for the coming year and it all leans towards the equity markets. After a few years of falling markets with insurers and investment companies tightening their purse strings, Standard Life believe there will be an upturn in equities this year. They also believe that equities will outdo some fixed interest stocks in the performance stakes.
In their recent market review Standard's view is that investors need to stay heavily weighted towards UK, US and Pacific Basin equities. They also believe that investors should move away from UK and US fixed interest investments and stay neutral in the areas of European and Japanese equities and property investments.
Standard Life's head of global strategy, Andrew Milligan said: "this is a tactical view for the next one to two years which has not really changed since the last quarter of 2002". Mr Milligan also said that short-term volatility was expected in the markets due to the possible war in Iraq.