View more on these topics

Potter warning of further falls

Thames River co-head of multi-manager Gary Potter says he is sceptical of the current market rally and warns that the UK and US are moving from a credit crisis to a solvency crisis.

Speaking at Adviser Live 2008 in London last week, Potter said he believes the market will run out of steam and investors should wait for a second dip before buying in again.

He said: “I am surprised that the FTSE 100 has only gone down by 1.5 per cent since October 1, 2007, which on the one hand is quite resilient but on the other hand is quite worrying. The cynic would say the recent rally has been orchestrated to allow banks to recapitalise.”

He said the move from a credit crisis to a solvency crisis for UK and US consumers is likely to be led by the housing market and added that the market has only seen the tip of the iceberg.

Potter said: “It is for that reason that we have been raising our cash levels in the past few weeks. I agree that there are plenty of opportunities out there over three and five-year periods but for now it is a case of waiting for this secondary crisis to be over and then you buy.

“I do think we are nearer the end than the beginning for financial companies with regards to the credit crunch, as it is now a known factor. I think there is more bad news to come out but I do think the more serious problem is the broad economic effect of people not being lent money to grow their business and that will hit the economy.”


On the warpath

The RDR, as described in interim form, looks just like it should. There is a treaty or two to negotiate but we will all be home by Christmas. The brave and fair Amanda Bowe has sent the complexifiers packing.

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm