Five post-crash bets for the road ahead
25 Aug 15
Industry experts come together and select their best investment calls for the post-crash environment.
US
While recent US economic data does not have McDermott hopping with excitement, he said that another stock market drop would prompt him to buy.
“US economic data has been pretty boring,” he expanded. “Also, deflation is more of a worry than inflation in the short term, so growth will probably just muddle along, but at least it is not disastrous. I would not be surprised if there is another lurch down in the market, and if there is then I would take it as a very strong ‘buy’ signal.”
Willis added: “Relatively speaking the US is still quite expensive, and, while we have had a pretty big sell-off and are looking at a fairly good bounce back, obviously returns are still negative year-to-date.
“That said, there is justification for that in the sense that profits look like they have peaked, so it is hard to see where earnings momentum is coming from. Though we are still going to see interest rate rises at some stage, what has happened in the last couple of weeks has pushed that back.
“Also, economic data has been mixed – not pointing at anything particularly strong, but not horrific either.”
Funds owned: (McDermott) Axa Framlington American Growth, Brown Advisory US Flexible Equity, Schroders US Mid Cap
Tags: Bonds | China | Investment Strategy
