Equity Markets To Face A Period Of Consolidation
The reflation trade has allowed equity markets to gain 8% since the beginning of the year. Over coming months, stock markets will have difficulty in finding further catalysts and are likely to go through a period of consolidation. The medium-term trend is nevertheless still up, as the global economy keeps expanding.
Over the next 12 months, and beyond the phase of consolidation that we see developing over coming months, we expect moderate upside potential. Dividend yields – averaging 2.5% on a global basis - will thus bring a substantial contribution to the total return of equity investments.