The key market developments, according to the company’s ‘Global Outlook 2018’, would include ongoing recovery in the US to last three to five years and Euro zone growth to be sustained thanks to an increased consumer and business confidence.

Also, Japan would continue its good recent performance with inflation heading for one per cent and China’s GDP growth would expect to excel again, albeit with some concern, the company said.

Lazard Asset Management’ managing director and head of US equities, Ron Temple explained: “The primary risk factors globally revolve around monetary policy, trade policy, populism and politics, and geopolitics.

“For investors, it is unfashionable to be bullish on equities with markets at all-time highs and valuations at premium levels.

“However, we see upside in global equities as earnings growth expectations are strong and as fixed income assets are even more expensive than equities.

“Regardless of the asset class, we believe security selection will be a critical component of generating reasonable returns in markets going forward, given the risk of drawdowns on the back of unforeseen events and as different countries and companies deliver varying degrees of growth.”