The Dexia house view is that equities will continue to rise in 2010 but will be subject to considerable dispersion and volatility. This means "current market conditions are much more in favour of long short strategies," says Ludovic Ferras, head of the alternative and structured investments specialists team at Dexia Asset Management.
He believes equities will end the year around 10% higher but there will be "volatility and dispersion not only in equities but in the credit market as well".
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