Booming fuel prices, the long-term impact of the sub-prime mortgage collapse and a slow but steady rise in inflation have some financial analysts suggesting that the worst is not necessarily over.
In a recent white paper, London-based Schroder Investment Management Ltd. says that it continues to take a cautious approach to equities, as it has for some time.
The organization says it would need to see some signs of macro stability before increasing its exposure to the asset class. On the other hand, it says, the company has become more positive on corporate bonds – via an overweight in high yield – and reduced cash to neutral.
