A survey of investment managers has revealed cautious optimism for a continuing equities recovery in 2004. Although expectations for the coming year are relatively subdued after last year's stock market gain, the survey shows a trend towards a period of rationalisation. Managers are predicting returns of 8.2 per cent for UK equities and 9.9 per cent in the European market. Average annual returns are expected to remain between 5 per cent and 10 per cent for the next three years.
In the international arena, a parallel survey showed clear expectations of a recovery in glob