Market outlook disappoints for 2003

A leading fund manager says that 2003 will be another disappointing year for investors and they should be cautious. Perpetual Investments' equities manager John Sevior says he doesn't believe earnings per share will reach the predicted 14 per cent in 2003 – with the exception of News Corp. He said 2003 trading will be “choppy” and will hit profit expectations.

However Mr Sevior said that experienced investors could pick up some bargain stocks over the next six months if they do their homework. Perpetual also predicted that the Reserve Bank will keep interest rates on hold.