The group is currently overweight developed equities, which it believes still offer good long-term value.
Kevin Gardiner, head of global investment strategy at the group, said: “Credit is expensive and may have already seen its highs for the cycle. We are now entering, however damply, the phase of the business cycle in which it may be more attractive to own businesses than to lend to them.”
Gardiner noted the setback seen in May reversed in June, particularly at the tail end of the month once some certainty around Greece was established.
Further out Gardiner believes market advancements are likely to continue with a mix of capital spending, higher dividends, buy-backs and an increase in M&A activity all acting as positives.
Within its developed equities exposure, Barclays Wealth is overweight Europe ex UK and the US but is underweight the UK and emerging markets.
“We expect the FTSE to make decent progress this year but it may underperform further given the fragile economy. The UK may be the most international of the big markets but the domestic outlook still counts for something.”
Gardiner went on to point out that while the group likes emerging markets in the longer term, valuations are not what they once were. Instead he is looking to increase emerging market exposure via cheaper developed market stocks.
