Equities still the most preferred asset

EQUITIES are still preferred over asset classes such as bonds and cash although the potential upside for the KL Composite Index to reach AmResearch's base-case high target of 900 points is less than 10%. 

However, that would mean an annual return of 12% for investors should the benchmark index hit 900, said AmResearch, which has projected a low target of 800 points on base-case estimates (using average earnings for 2004 and 2005 and yield gap of 2.1%).