Dublin Roundtable: Navigating noise and lower-for-longer growth
18 Feb 16
The precipitous falls seen on stock markets in recent weeks have opened up opportunities for brave managers of long term money, while at the same time ratcheting up the noise and negative sentiment in the round.
Dermott Aspell, senior fixed income strategist at Goodbody Wealth Management, says his firm raised a bit of cash coming into the Fed lift off and, like Libotte is a bit more constructive on risk assets following the selloff.
“We’ve actually added to our equity exposure in the US following the sell-off, which brought us back to a marginally overweight position in equities.”
” In fixed income land, we’re looking towards a global high yield at the moment as a potential source of returns, but we are considering looking more towards quasi-equity risk rather than pure fixed income risk.”
“I think a key theme for us is, if you get further easing from the ECB in March, a further cut in deposit rates, then we face the spectre of domestic banks moving into negative rate territory, which, for the Irish retail investor, would be somewhat shocking given that three, four years ago they were generating 4% return on twelve month deposits.”
Tags: Investment Strategy
