Coutts is today launching its Mid-Year Investment Outlook, highlighting Coutts' view of the key investment themes that are emerging as we enter the second half of 2015 .
Arne Hassel, Head of Investments at Coutts, said "We expect a slower and bumpier ride from here. Most of our themes have worked so far this year, but we expect markets to become tougher."
"Coutts has been well placed to take advantage of the major market moves over the last 6 months, with our preference for equities relative to bonds, and emphasis on European and Asian equity markets. Although we see no obvious threats to the positive backdrop, we think some markets are stretched and we have become more cautious."
Other key themes include:
• Mind the (Return) Gap – highlighting the importance of a 'counter-cyclical' investment discipline. Following the crowd often loses money.
• European equities have been one of our more important portfolio allocations. Though the market raced ahead early this year, we still see potential for further gains, on the back of improving economic data and decent valuations.
• Asian equities have ample scope to recover as the region benefits from improved growth and stabilisation in China.
• UK commercial property, where we still find yields attractive, particularly relative to fixed income yields.
• When Cash Makes Sense outlines the case for cash when bond yields are extremely low and equities look expensive.
• Market Information: Less is More underlining the importance of filtering out what really matters in a world of information overload.