As for equities as a whole, we are not expecting a great performance over the next 12 months.
They have been appallingly managed, particularly regarding acquisitions. Shareholders will be asked to dip into their pockets to pay for management mistakes.
Profit forecasts for Europe are still far too high.
We think the odds are that a recovery is under way but we don't think it will be a terribly strong recovery, and our biggest issue is that valuations are not particularly attractive even now.
The performance of European equities corresponds closely to the strength of the dollar.
