Fidelity Worldwide Investment’s Sanjeev Shah says he remains convinced that markets will not enter into a double dip recession.
Shah, manager of the Fidelity special situations fund, says the likelihood of a double dip scenario has decreased following government responses to the global crisis.
He says: “I do not think we are we are likely to go into a double dip scenario, there have been quite significant excesses taken out of the system.”
Shah believes current levels of pessimism in the market shown by investors have created a number of investment opportunities for contrarian and value-centric investors.
He says: “At periods of extreme market pessimism, are periods of extreme positive opportunity.”
Shah says although there have been difficult periods more recently, he has not been convinced to change his approach to fund management.
The fund manager says he has been looking at “unloved” and cheap areas such as the industrial cyclicals and commodities space for fresh investment.