Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a700881
Buxton tips FTSE to hit 7,300 next year
by Danielle Levy on Sep 05, 2013 at 07:51
‘We have seen this ‘[pick up] in the data since the beginning of the second quarter and it is not just consumer – well it is the consumer – but also manufacturing, production, construction and even tentative signs of a pick up in investment and continued gradual growth in employment,’ he explained.
He is also tipping a rise in M&A activity and capex, which he says signifies that the healing process is moving into its final phase.
While markets prepare for Fed tapering this month, Buxton say a September or October market wobble would come as no surprise. One of the UK equity head’s biggest concerns is not tapering itself but rather the second round effects, particularly on emerging markets.
‘The other thing I worry about - the market is not focused on and I am not sure how it plays out – is that you are clearly aware that a lot of emerging countries massively subsidise their domestic government fuel prices. If a global oil price stays north of $80, that is unsustainable. How this ends without it affecting the growth rates in some of these countries or political stability in these countries is something I worry about,’ he says.
A Chinese slowdown, and a return of Eurozone tensions post the German election and the pace of bond yield rises also feature among Buxton’s short term concerns. The manager argues UK equities can only continue to rise if short-term rates stay low, bond yields only rise at a gradual pace and economic data continues to improve.
The manager also cites the Syrian crisis as a worry and expects unrest in the Middle East to continue for many years to come, arguing that the region is undergoing the equivalent of the Hundred Years war.
As the debate over the EU referendum rages, Buxton takes the personal view that the UK would be better off out of the EU and that it may not be as detrimental from a trade perspective as some anticipate.
Over the five years before Buxton left Schroders in March he returned 56.6% with the £3 billion Schroder UK Alpha fund versus a rise of 35.68% by the FTSE 100 over the same period.
News sponsored by:
Today's top headlines
More about this:
Look up the funds
Look up the fund managers
On the road
by Alex Steger on Dec 11, 2013 at 10:19