Alliance Trust 'cautiously optimistic'

Investment company Alliance Trust beefed up its exposure to equities to 90.6% during the quarter ending 31 October, with particular focus on stocks that will benefit from an upturn in economic activity.The company thinks the consumer will remain subdued for some time, so is underweight in Consumer Goods and Services, as well as Utilities and Healthcare. Its largest overweight positions remain in Oil & Gas, Industrials and Basic Materials."Guidance and clarity for 2010 and beyond is improved, which should provide support for current market valuations, which were starting to look a little stretched in certain areas," it said Tuesday."Our concerns regarding the withdrawal of Quantitative Easing and the associated risks remain. However, on balance, we remain cautiously optimistic and continue to seek out long-term opportunities in quality companies with strong balance sheets, good cash flow and high-quality management."