Barclays Wealth cuts equities exposure amid inflationary threat
Barclays Wealth has reduced its overall exposure to equities as the UK wealth manager is advising its clients to brace for a persisting inflationary environment, according to a Reuters report.
The report cited a strategy note released on Saturday from the UK wealth manager, in which Michael Dicks, head of research and investment strategy, was quoted as saying: "Oil prices and inflation are unlikely to fall back sharply, and there are potentially severe problems stemming from wage/price spirals in some of the major developing economies."
"The outlook looks increasingly gloomy for 2009, and Barclays Wealth has reduced its overall equities overweight," he added. The reduction was particularly focused on European stocks, including UK. "Better US consumer spending news should allow US equities to regain some ground soon," Dicks wrote, as cited in the Reuters report.
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