Seven Black Friday bargains
By Sonia Rach, 24 Nov 17
Consumers in the UK and globally will seek out bargains on Black Friday, but what about the investment world? Here are the views of seven managers and areas in the market that they see as undervalued.
Major central banks globally have been undergoing changes and a “synchronised tightening” move among them “could give developed market government bonds a volatile ride”.
Quentin Fitzsimmons, portfolio manager at T Rowe Price Dynamic Global Bond Fund explained that the key to navigating around this environment will require taking a “smart approach”, with “specific positioning on the yield curve”.
He said: “In addition to yield curve positioning, another way of navigating the current environment is to identify countries that are potentially less sensitive to a rising rate environment. Australia stands out in this regard.
“Although its domestic bond market is likely to react to a selloff in US treasuries, it should quickly revert to being driven by domestic fundamentals once the market settles. Israel also offers a potential refuge from interest rate volatility.
“With little sign of inflation in the country’s economy, the Bank of Israel is likely to remain on hold for the foreseeable future. However, the yield curve seems to be pricing an interest rate path similar to the one likely to be followed by the US.”
Tags: Antipodes Partners | Ashburton | Cohen & Steers | Edentree | Federated Hermes
