Global Stocks to Post ‘Modest Gains,’ Prudential Says

(Bloomberg) -- Global stocks may post further gains next year, boosted by economic growth and low interest rates, according to Prudential International Investments Advisers LLC. Investors should buy stocks in the first half, especially those in emerging markets, instead of bonds and cash, John Praveen, Prudential’s chief investment strategist, said in a statement ahead of his speech in Seoul today. Prudential International Investments is a unit of Prudential Financial Inc., which managed about $580 billion of assets as of June.

The MSCI World Index has risen 61 percent from March 9, its lowest level this year, and is set for its biggest gain in six years. Equities have rallied as governments poured in $2 trillion in stimulus measures and central banks cut interest rates to near zero to kick-start their economies. Last year, the measure dropped by a record 42 percent.Other investors are less optimistic, with Scotland’s two biggest fund managers saying it’s getting tougher to make money from Asian stocks. Aberdeen Asset Management Plc has been reducing its holdings because of their valuations compared with other parts of the world, said Mike Turner, head of strategy. Ronnie Petrie, head of Asian stocks at Standard Life Investments, sold shares such as Globe Telecom Inc. in the Philippines.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aF.v2NRhNIAU