The capital markets crisis is nearing an end, opening the way toward rising share markets in the coming months even as real economy ructions continue, the chief executive of asset manager Allianz Global Investors said.
"We're a third of the way through the economic crisis and two-thirds through the financial crisis, but we're in the final stage of the capital market crisis," Joachim Faber told Reuters in an interview.
The financial environment was improving thanks to decisive action by central banks, with government efforts to assist banks burdened by toxic assets also gradually taking effect, he said.
"I expect a moderate, slightly rising tendency on the stock markets this year," said Faber, who is also a board member of Europe's biggest insurer, Allianz.
Germany's blue chip DAX index would close 2009 at between 5,000 and 6,000 points, predicted Faber, whose asset managers have around 1 trillion euros ($1,355 billion) invested on behalf of Allianz and third-party customers.
The DAX now stands at around 4,900, having risen by nearly 20 percent in the last two months.
AllianzGI favours Asian equity markets, which will be pulled along by China's locomotive, with Japan also offering good prospects, said Faber, 59, who has spent nearly a decade at the helm of AllianzGI, one of the world's top asset managers.
"Generally, the equity markets will certainly not rapidly recover. Some volatility will remain," Faber told Reuters Television, adding that the lows of March 2009 were unlikely to be re-tested.
Comments
Comments are closed.