View more on these topics

Gartmore pair issue warning on green shoots

Gartmore fund managers Roger Guy and Guillaume Rambourg have called on investors to be wary of green shoots as macro and corporate news flow remains bleak.

The pair, who manage the Gartmore European select opportunities fund and Continental European fund say that we will only see an inflection point once US real estate asset prices found a support level, claiming that although there has been some form of stabilisation on housing and inventory levels the data remains fragile.

“In the meantime, markets will remain volatile and sector rotation between defensive sectors and cyclical sectors will be brutal. Although there has been ‘less bad news’ emerging lately, it may be premature to conclude that we have embarked upon a broader economic recovery”.

Guy and Rambourg say that although unemployment has rocketed and poor first quarter reporting figures are expected , the impact will not be as heavily felt as it has in the past.

“This time around, there is no more ‘surprise effect’ on the announcement of bad news unlike in 2008.”

Recommended

Convertible appeal

To state the obvious, anything with a yield these days seems to be drawing attention. There has been a raft of equity income fund launches and a stunning £3bn in net inflows into bond asset classes in the first two months of the year, high-lighting the strong appeal of yield.

Budget holes

Another Budget, another disappointing damp squib. This year’s announcement by the Chancellor was one that will be remembered by some – but certainly not by the mortgage industry.

Alliance Trust benefits from cash stance

Katherine Garrett-Cox, chief executive of Alliance Trust, says that raising the cash position early in 2008 has improved the performance of the FTSE 100 listed vehicle. In preliminary results for the year to January 31, 2009, released this morning, the trust’s peer group ranking climbed from 25th out of 38 funds in the Global Growth […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment