The short term future of equities is looking
good as high risk premiums look attractive to investors in the face
of bonds, Societe Generale Private Banking Hambros (SGPB) has

According to Eric Verleyen, CIO of SGPB who
was speaking at an in-house press briefing, G5 government bonds are
overpriced, yields near record lows and corporate bonds preferred
as companies are currently showing very sound balance sheets.

The value of commodities such as gold may
under-perform equities before an eventual recovery, he said.


Equities surge

Much of the equity success can be attributed
to the action of central banks around the world, SGPB said.

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With the financial system stabilising,
Verleyen is expecting investors to focus again on the fundamentals
of companies. Among the sectors he sees performing well is the US
oil and gas industry.

Industrial and energy companies such as Valero
Energy Corporation have acquired a multi-year competitive advantage
from the extraction of shale oil and gas.

UK companies are paying high and rising
dividends with strong global brands such as Reckitt Benckiser, as
well as companies with competitive advantages such as BT Group, the
French banking group said.

There have clearly been improvements in banks
fundamentals, and Verleyen said that investors are benefiting from
this by investing in the sub-ordinated debt of firms such as Axa or