For investors, Mr Williams suggested that growth assets are likely to benefit from central banks’ moves to keep the tap running next year, and – in the longer term – inflation assets.
Although investors might naturally prefer the US, there are companies in Europe that could still do quite well in the current macro environment, he said.
“Valuations are still quite attractive, and a lot of companies trade on a global level,” he added.
UK growth grabs the headlines
The third quarter reading of UK GDP – 0.8 per cent – was the biggest increase since 2010, according to the Office for National Statistics.
Now the British Chambers of Commerce has predicted that the country will breach its pre-crisis growth rate next year.
Longer-term forecasts have also been more positive, with chancellor George Osborne (pictured) proclaiming in the Autumn Statement that the Office for Budget Responsibility (OBR) expects growth in 2014 to be 2.4 per cent, compared to its previous forecast of 1.8 per cent. The Bank of England predicts growth nearer 2.9 per cent.
The OBR also revised up its predictions for the following four years. Growth in 2015, 2016, 2017 and 2018 is predicted to be 2.2 per cent, 2.6 per cent, 2.7 per cent and 2.7 per cent respectively.
There has been a shift in investors’ minds, too. Recent figures from the IMA show that the UK All Companies sector returned to favour, topping the sales charts for the first time since 2004.
On the other hand, the IMA UK Equity Income sector – which was the top-selling sector in September – was the worst-selling sector in October.
It seems the chancellor is not the only one who believes in UK GDP growth.
