UK stocks will benefit from higher dividend yields than in the rest of the world while Japan is set to see further uplift from ‘Abenomics’ over the coming years. Emerging market equities are now ‘relatively inexpensive’ and still benefit from favourable longer term trends such as good demographic profiles, Mahon noted.
The team at Baring has had some success with these kind of forecasts, with Mahon noting that back in 2003 and 2004 the firm correctly called the strong performance of emerging markets equities and property over the decade, as well as the poor performance of Japanese equities seen until recently.
