Warning of 'roller-coaster' year for markets
Global equity markets are likely to remain extremely volatile for most of the current year before finally showing signs of recovery towards the end of the year, a leading investment company said today.
Irish Life Investment Managers (ILIM) – the country’s largest investment company – said in its market outlook for 2009 that equity markets were in for a ‘roller-coaster’ ride
"Equity investors should be braced for further poor economic and corporate news," ILIM Senior Equity Strategist James Forbes said.
The ILIM strategist expects that equity markets will be generally supportive towards President-elect Obama’s moves to boost the US economy.
“Investors could react positively to the massive fiscal stimulus that he will announce”.
On the Irish stock market, Forbes warned that share prices in the financial sector will remain under pressure for the first few quarters due to looming rights issues by AIB and Bank of Ireland.
He added that the prospects for the ISEQ hinge largely on the prospects for CRH, Ryanair, Elan, Aryzta and Kerry Group which “continue to trade at relatively attractive levels and should offer reasonable potential for capital appreciation throughout the year.”
Forbes however predicted a very difficult year for the Irish economy with GDP shrinking by 4% and inflation falling to zero.
