Asset managers take a cautious line on equities prospects.

Byline: Edward West

Asset managers take a cautious line on equities prospects EDWARD WEST COMPANY earnings would have to surprise on the upside for the equities rally to go on next year, and Metropolitan Asset Management (MetAM) aimed to cut its exposure if prices kept rising. Equity research head Johan de Kock said yesterday he expected markets to cool off in the new year. While companies appear to have the ability to reduce costs further, markets have clearly front-loaded much of the returns. Analysts are way too optimistic about the future. This is a concern because it doesn't seem to reflect sentiment on the street as both consumers and companies continue to deleverage. …