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.
The political turmoil in Catalonia over the last few months has led to some dips to buy in and questions have been raised around whether this presents an opportunity for investors.
Claire Shaw, senior portfolio manager of the Oyster European Mid & Small Cap Fund said she has struggled in a Spain “because the strong economic recovery has largely been reflected in valuations”.
“However, we are invested in the housing recovery in Spain and the uncertainty caused by the Catalan crisis has provided an opportunity to add exposure to this trend,” Shaw added.
“Spanish housing is an attractive long-term recovery theme and has recently become accessible via the listings of Neinor Homes and AEDAS Homes. Activity in the housing sector contracted very sharply after the financial crisis, but has begun to recover over the last couple of years.
“Housing demand is improving on the back of population growth, falling unemployment, low interest rates and better mortgage credit availability. At the same time, excess supply has been largely absorbed.
“The pre-2008 housing bubble led to an excess of stock throughout Spain after the crash, forcing down prices. While there remains considerable stock in some regions, this has tumbled in the larger cities like Madrid.”
Tags: Antipodes Partners | Ashburton | Cohen & Steers | Edentree | Federated Hermes
