Gartmore chief investment officer Quintin Price is predicting global equities to outperform bonds in 2004 but says the chances of equity market returns being as high as in 2003 are remote. The fund manager is expecting Japan and emerging Asian markets to outperform Europe over the next year.
Price says: “We expect returns to be far more modest in 2004, particularly for the developed markets, with stronger returns coming from Japan and emerging markets, especially those in Asia.
He says: “At the other end of the scale, we believe European equity markets are likely to struggle. US equities are already pricing in a significant earnings recovery, and dollar weakness will depress returns for UK investors. We believe UK equities are generally well supported at these levels and expect a stronger performance from the UK than either the US or Europe.