Global equity outlook remains volatile
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This article was originally published by staff at InvestorDaily, a Sterling publication.
The outlook for global investing in equities has improved but the market will remain volatile, according to William Blair Investment Management.
The global manager said the market has seen improvement as a result of global conditions, including the US "fiscal cliff" developments, the eurozone and a slight return to form for growth in China.
"Our view is that the outlook is more positive than is generally believed," William Blair co-portfolio manager Ken McAtamney said.
"But a recovery is not going to be smooth - it is going to come in fits and starts."
McAtamney said each of the three major global regions - the United States, Europe and Asia - have unique investment opportunities in the global equities market.
The diversity in Asia makes it an attractive option for investors, particularly with China experiencing a re-acceleration in growth, he added.
"We think they have clearly stabilised the slowing of their growth and to some extent we are seeing a re-acceleration - and we think that is critical, not just for China but for the region overall," McAtamney said.
"The areas that could be favourable really run the entire gamut of all sectors. So whether it is resources in Australia, consumer companies in China or industrial exporters in Japan, we think there are quite a few compelling opportunities."
McAtamney said there are some good valuation opportunities in Europe now that the sovereign financial situation has been de-risked.
The US housing market is also an attractive option for investors, due to its standing in the US economy.
"Activity in the housing market is a large part of the US economy," McAtamney said.
"If you look at the related, derivative jobs around that, it could represent about a third of potential employment in the US - so that's a sector in the US that we are very focused on."