Buy equities now - HIM

Investors who want to successfully play the markets this year should buy equities now with a view to selling and locking in gains before summer, according to a new analysis from Hibernian Investment Managers (HIM).

HIM, the fourth-largest fund manager in the Republic, has pencilled in a 15 per cent rise for equities this year but suggests that bonds could be vulnerable to higher growth and inflation.

Property will deliver "slow but stable returns" of between 6 and 8 per cent, the company believes.

HIM is forecasting strong corporate-led US growth for this year but expects activity to be more muted in Europe, where the strong euro will continue to smother export-led expansion.

Looking to equity markets, the firm sees November's US presidential election and low global interest rates as the two main drivers for profit growth this year.

HIM expects the bulk of stock-market gains to occur in the first half of the year and is planning to lock in gains over the summer by buying into high-yield products.

The firm's global equity strategist, Mr James Forbes, said he planned to follow "companies with a high exposure to the economy" this year.

In the US, he favours large industrials such as Tyco and 3M, as well as well-placed IT companies such as SAP and Oracle.

Mr Forbes said he would be mostly steering clear of utilities and energy stocks, although HIM managing director, Mr Martin Nolan, said the company would welcome the arrival of Eircom on the market this year, "subject to price".

"It would be something we would look at," said Mr Nolan, He added, however, that a good dividend would be necessary to ensure interest from fund managers.

He was less enthusiastic about the possible listing of C&C, where "the story is not so good".

Irish stocks holding appeal for HIM include the main banks, CRH, Grafton and Kingspan.