Global wealth managers are cautioning investors not to move unconditionally into equity markets as they expect a setback despite for investors’ desire for risk.
Investors have shown interest to enter the risk spectrum this year due to strong run of equities last year, reported investmentweek.co.uk.
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Barclays Wealth & Investment Management European CIO Kevin Gardiner was quoted by investmentweek.co.uk as saying that the company has shifted clients with a moderate risk profile from neutral to a 7% ‘strong overweight’ in cash, taking profits on developed market stocks.
"We have pulled back from developed market equities and have moved overweight cash, which we hope to reinvest if and when a setback arises," Gardiner added.
Gardiner further said that the Fed unexpectedly raised rates February 1994 that resulted in fall of equity markets and rise in bond yields.
Psigma CIO Tom Becket was quoted by investmentweek.co.uk as saying that investors’ confidence for 2014 could be misplaced, warning of the ‘extreme optimism’ in markets.
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By GlobalDataCourtiers chief investment officer Gary Reynolds told investmentweek.co.uk, "Fundamentals in the major global equity markets have deteriorated since December 2012 and we will not get the same high levels of returns this year."
