Five market plays following the summer sell-off
By International Adviser, 1 Sep 15
Hargreaves Lansdown’s Laith Khalaf and Axa Wealth’s Adrian Lowcock on which markets to invest in and how to access them.
“Japan has had a bad time during the equities sell-off and was down almost 4% on 31 August,” said Khalaf.
“Japan is in a difficult position – it will be affected by China slowing, but Japanese valuations look pretty supportive and positive earnings momentum. Therefore it is one of the more attractive global markets.”
Lowcock added: “Japan has borne the brunt of the Chinese market sell-off and concerns over the strength of economic growth in China.
“However the country is still undergoing structural reform with more quantitative easing a possibility. As with Europe, Japan’s currency is also weak and will continue to benefit Japan’s company’s profits.”
Khalaf and Lowcock – GLG Japan Core Alpha
Khalaf said: “Manager Stephen Harker is fairly contrarian, uses a value-based long-term buy-and-hold approach that we like, and has a long and successful track record.
“Harker actively looks for companies out of favour with investors,” Lowcock added. “He uses valuations measures including price-to-book, dividend yield and price/earnings ratio to identify such stocks. He selects companies with strong fundamentals where he believes there is the opportunity for a turnaround.”
Tags: Income | Investment Strategy
