Equity will remain the preferred asset class, thanks to abundant liquidity, repressed interest rates and improved earnings prospects, notes Rothschild in its recent report.
In its recent report titled “Market Perspective”, Rothschild notes stronger global economic growth and plentiful liquidity offer supportive conditions for equity markets.
Plenty of liquidity
Rothschild believes despite the US Federal Reserve reducing its monthly asset purchases, liquidity would be plentiful in the coming months. It believes the Fed is likely to continue to increase liquidity until at least the third quarter of the year.
The report also points out that through an aggressive quantitative easing program, Japan is increasing its balance sheet significantly. Moreover, the European Central Bank too has suggested it will at least stop shrinking...
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