We think equity markets can continue to rally in the very, very short term on the back of QE, stimulus and low interest rates; these are very strong indicators...

We think equity markets can continue to rally in the very, very short term on the back of QE, stimulus and low interest rates; these are very strong indicators in the short term. We do, however, have question marks on the outlook for equity markets in calendar year 14. Particularly for the Australian equity markets where we will see increased talk and the potential of interest rates moving higher which is generally a negative for equities. We are also concerned about unemployment ticking higher and are cautious about the outlook especially as earnings growth has not come through. In our view activity in the housing market remains confined to the secondary market and we feel that bubble calls are premature. Chris Stott (CIO) discusses the indicators he is looking for in the housing market and how this influences our portfolio positioning. Watch the video