The "easy money has been made" across most developed market equities, according to State Street Global Advisors' deputy global chief investment officer Lori Heinel, who warned that pan-European stocks in particular could disappoint investors over the medium term.
That said, Heinel - who is also cautious on most areas of fixed income - still describes the firm's approach to asset allocation as "risk on", instead favouring equity markets that have been overlooked by many investors such as emerging market small caps or the financial sector. "We have become more beta-oriented over the past few weeks. Aside from this, we think the global reopening of economies is going to continue as vaccines are rolled out and as they improve," she said. Making the UK 'investable' again: Domestic equities now due a re-rating "It is still not assured - we have s...
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