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View the article online at http://citywire.co.uk/wealth-manager/article/a735215

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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2 comments so far. Why not have your say?

Keith Cobby

Feb 19, 2014 at 13:44

'Markets are notoriously difficult to predict' . What would they be like if they were predictable?

Who knows where the markets are heading, I don't know , you don't know, nobody knows. My view is that they are moderately priced, not cheap and not expensive. My strategy, which I have always followed and always will, is to buy quality dividend producing long only investment trusts/companies and roll up the dividends until I need them in retirement. Occasionally adjusting for geographical allocation.

My experience since the mid 1980's is that long term performance relies on being fully invested so that you don't miss the often very short periods of price momentum. In the downturns the dividends are there to protect you.

Best advice - ignore the noise of which this article is a part of!

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r rodney

Feb 19, 2014 at 16:20

Hmmmm....that sounds like sensible advice to me, especially the fully invested criteria. Someone who has been at it since the 80's must have some experience. Keith can I join your blog.

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