Higher volatility expected but equities remain an asset class of choice
Equity markets could experience in the next few weeks higher levels of volatility, because of political risks, economic uncertainties and/or policy shifts. Over the next 12 months though, the trend should be up.
We expect a moderate uptrend based on single-digit rises in earnings and stable valuations.
Adding the contribution of dividends to the price gains, equities remain an asset class of choice.