Equities still look good despite the sell-off

It might have felt as if the ground was opening up beneath the market’s feet when the Nasdaq Composite, the FTSE 100 and other indices gave up their entire gains for the year in just a few days. However, the case for equities remains strong.

Equities are still cheap compared wth bonds and although the pace of earnings growth might well slow, earnings are still strong. Over half of the sectors of the S&P500 reported double-digit earnings growth in the first quarter of this year.