View more on these topics

Schroders’ Lynch sees 10-15% fallback

Schroders European equity fund manager Andrew Lynch believes that the market is set for a 10 to 15 per cent fallback by the end of the first quarter of next year.

Lynch, who manages the Schroder ISF Euro dynamic growth fund, says he sees another storm coming for markets, pointing to a number of companies in the cyclical area becoming expensive since the rally in March.

He says the market was oversold in February amid fears about which banks would survive and much of the recovery is due to the fact that the banking system has survived.

Lynch says: “I would say that 30 per cent of the bounce- back we have seen has been justified on the back of this but the recent 20 per cent rise is harder to understand as it is on the assumption that companies have managed to quickly find a way to earn as much or more than they did in 2007. I find that hard to believe for a number of areas, like the cyclicals.”

Lynch says there are investment opportunities in the medium term.

He says: “The likes of Shell, which can pay a decent dividend, are going to see top- line cashflow, earnings and dividend growth in the next three years.”


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