Speaking at a Morningstar conference in London today, the Fidelity special sits manager said the market has moved from “the greed to the fear stage” and it is impossible to know the extent of contagion from the US sub-prime crisis.
He said: “We can only see the ripples and no-one kows what is underneath.”
Bolton said value opportunities are very scarce and he has taken some short positions using Ucits III powers.
One sector he is favourable on is media from a contrarian perspective.
He warned that the credit crunch is a “real world” event and is not just limited to finance and could ultimately drive a recession in the US.