The best investment performance in 2003 will come from the UK, with returns of 7 to 10 per cent expected over the next 12 months according to Invesco Perpetual chief investment officer Bob Yerbury.
In a statement outlining his views for 2003, Yerbury says UK interest rates are the lowest in 40 years and valuations for UK and European stocks are looking quite cheap.
He says Europe causes concern, especially Germany while the US will likely offer a small degree of growth. Asia on the other hand will be hampered by the threat of deflation and slow exports with Japan likely entering a renewed recession.
Yerbury says: “We expect the UK to be the strongest market in 2003 and that consumer spending will continue. We expect the manufacturing sector to continue to find it difficult in 2003, with the best performance coming from the biotech, telecoms and construction sectors.”