Crispin Murray, Head of Equities at BT Investment Management, says that despite the challenging economic environment there remain a number of reasons to be positive on the outlook for equities. Firstly, Murray points to the high levels of cash sitting on the sidelines. “Term deposits as a percentage of the equity market cap it is double what it was back in 2007 before the market peaked. So people are being more cautious this cycle, there is more cash. It doesn’t mean it is going to come into the market but I believe that if you saw the market 'come off' that money would come back into the market. So that supports our market going forward.” Murray also says that while the earnings yield on equities has fallen and equities look fully valued the premium, when compared to other asset classes, will be supportive of equities moving forwards. The full presentation is available via a webcast here: (VIEW LINK)