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.
David Morissey, investment manager at Smith & Williamson says his firm is perhaps slightly more bearish than the consensus.
“The year started off pretty badly in terms of the intensity of the selling. As a general guide, our cash weighting tends to sit at around 8%, but we would be looking to raise that on the back of the relief rally which we hope is coming and will continue to raise cash tactically in the next couple of months, to see where things go next.
From a client perspective, Morrissey said that the expectation waters were muddied somewhat in 2015 by the strong tailwind provided by the currency.
“You keep saying the same thing about the rate environment, that rates and growth are going to be lower for longer and so clients have got to temper their expectations. That expectation should not be for 9% and 10% growth, it should be more like 4% or 5%.”
Tags: Investment Strategy
