MFS veteran warns on hyped-up HY and shale

MFS chief investment strategist James Swanson has little faith in a European recovery and believes the emerging market debt picture will once again outperform in the coming year.

The 27-year market veteran set out his major themes, challenges and potential surprises at a roundtable event in London.

Beware the shale revolution

‘It is madness this prognostication that the United States is going to be a net exporter of shale in the near to mid-term. It makes no sense to me at all,’ said Swanson.

‘It is all based on oil still being at $100 per barrel once shale oil and gas is at a transferable and useable stage but once it gets to the level where it can be moved and used freely then the price of oil will collapse. The Middle East will always win this game.’

‘Of course an abundance of cheap natural gas will be a big help to the US manufacturing sector and also help with regards to exports, but I don’t think it is going to be a miracle in the way a lot of people think it will be.’