Stock markets might be at record highs, corporate earnings might still be weak, global growth may be stuttering, but fund managers believe there is still room for a move higher in equities this year.
Gavin Rankin, the EMEA head of managed investments at Citi Private Bank, a bank where customers typically require $25 million to join, told CNBC that he has been favoring European equities but still sees opportunities elsewhere.
"U.S. equities have had a phenomenal run, particularly last year, but there's some upside left in those markets," he said on the sidelines of the Fund Forum International event in Monaco.
Jim McCaughan, CEO of Principal Global Investors said that sentiment at the event was rather "mixed" which, he added, gave him hope that there was still room for some more upside in developed market indexes. Some investors have decided to take their money away from equities and onto the sidelines, he said, which he saw as a bullish sign for the asset class. He added that the U.S. was currently seeing promising growth and predicted a further move up for the country's stock markets. Europe, helped by easy monetary policy by the European Central Bank could also move higher.