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Bulls versus bears: will fortune favour the brave?
by Eleanor Lawrie on Feb 19, 2014 at 11:56
Another manager who is seeing further upside is F&C co-head of multi-manager Rob Burdett. In the last few weeks he has moved his F&C MM Navigator Boutiques fund from an underweight in Asia to a 2% overweight in the region.
‘At a corporate level, it still looks very good, and cheap,’ Burdett said. ‘We were underweight Asia all of last year and that is a fairly recent move for us based on valuations.’
Markets will muddle through
Burdett said he expects the market to ‘muddle through this year,’ on the belief that ‘the more risk you get, the more return you get’. In the long term this is leading him to favour equities and absolute return bond funds.
However, within his Asia call Burdett is underweight emerging markets due to the uncertainty surrounding how new Federal Reserve chair Janet Yellen will go about reducing the flow of liquidity to markets.
Markets are notoriously difficult to predict, and it is perhaps unsurprising that a growing number managers fear the wobbles seen at the start of this year could herald a more serious correction. But the bold were the big winners last year, and with bonds and cash offering a negative real return, safe havens are hard to find.
Whether fortune will again favour the brave remains to be seen.
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On the road
on Mar 07, 2014 at 13:36