Many managers claim this week’s stock market tumbles are a knee-jerk reaction and that they can spot opportunities for investors.
Fidelity’s Rossi says big balance sheets offer protection
Dominic Rossi, global chief investment officer of equities at Fidelity International, said we can expect lower growth in the UK and across Europe, and that is now being discounted in equity markets.
He added: “For investors, diversification is key. This means having a balance between sterling and non-sterling assets, alongside bond assets, which will provide a store of value.”
Axa IM’s Page gives forecast on the economy
David Page, senior economist at Axa Investment Managers, said he had revised his UK gross domestic product forecast for 2017 to 0.4 per cent from 1.9 per cent.
He expected easing in monetary policy before the year end and estimated two 0.25 per cent rate cuts and between £50bn to £100bn of quantative easing.
M&G’s Leaviss on ‘loser’ bonds
Jim Leaviss, head of retail fixed income at M&G Investments, said the “losers” in bond markets were the riskier fixed-income assets.
Mr Leaviss said Italian and other peripheral government bonds were underperforming.
Jupiter’s Chatfeild-Roberts on UK opportunities
John Chatfeild-Roberts, head of strategy at Jupiter Independent Funds team, said the underlying fund managers in Jupiter’s portfolios had a general tilt towards high-quality companies with robust balance sheets, which he argued should be well-suited to weathering the immediate storm.
Wellian’s Philbin on impact on sterling-based assets
Richard Philbin, chief investment officer of Wellian Investment Solutions, said many of the UK’s best-known companies were very international and a fall in sterling would make their goods and services immediately more competitive overseas.