Global investors to top up portfolios as stock markets rise

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Global investors to top up portfolios as stock markets rise

Investors and savers across the world are now "topping up their portfolios" after the US Federal Reserve confirmed it would leave interest rates near-zero and continue to support the US economy.

The US central bank's meeting earlier this week which prompted the American benchmark index, the S&P500, to jump almost 1%.

And with stocks in the Asia-Pacific mostly traded higher on Thursday too and European markets expected to do the same, Nigel Green, pictured right, chief executive and founder of deVere Group, believes that now is the time to top up portfolios.

"It's been made clear by the Fed that the world's largest economy, which is showing signs it is beginning to falter in its recovery, will continue to be supported by its central bank,: said Green.

"This will serve to further boost asset prices. As such, many investors are now topping up their portfolios ahead of future announcements - which are likely to be in the same direction of travel as this one."

Green points that the US Fed's "considerable and ongoing suppor"t is acting as a backstop for stocks and that he tone of Wednesday's  statement, and the Fed's fears over the economy, suggest that additional measures will be implemented. As a result investors are bolstering their investment portfolios.

Warning

Green warns thought that the buoyant stock markets can seem "out of step" with the slew of alarming economic data.

"What is happening, as a closer look at the markets reveals, is that, of course, not all stocks and sectors are rising equally," he added.

"Indexes are being driven up across the board by the ‘winners' of this new era including tech, biotech, home entertainment and established online retailers, amongst others.

"Therefore, investors should work alongside a good fund manager to seek out those stocks most likely to generate and build their wealth over the long-term."