M&G Multi Asset team // 30/04/2015
In our updates over recent years, we have been emphasising the importance of moving money away from very low cash rates and into an array of assets, diversified across the government bond, credit and equity markets. Today, there are increasing expectations of a rate rise this year in the US and UK which could improve the returns on cash and trigger market volatility. However, it remains our view that selected equity markets are sufficiently attractive to make tolerating potential volatility worthwhile. At the same time, divergent trends in central bank policy around the world could well continue to lead to volatility in foreign exchange markets.