Legal & General expects equity market volatility to continue

At September’s Fundamentals briefing James Carrick, Investment Strategist at Legal & General Investment Management, said that he was maintaining a cautious stance with regard to asset allocation in the current environment of significant economic uncertainty.

James Carrick said, “Central banks are currently torn between maintaining relatively high base rates to contain inflation risks and limiting the economic fallout from the US sub-prime housing crisis. These conflicting pressures are likely to weigh on investor sentiment and therefore although on a number of measures equity market valuations appear attractive, uncertainty and volatility in the market is likely to remain high.”

“Any investor looking for a “goldilocks” period of lower global inflation and faster economic growth is likely to be disappointed.”