View more on these topics

Woodford picks four sectors with potential

Invesco Perpetual income guru Neil Woodford believes the credit crisis is nearing its lowest point and opportunities are appearing in the market.

Speaking on Monday last week, Woodford said although a number of businesses are likely to find it hard in the next two years, he is confident that those that make it through are likely to do so in good shape.

He remains negative on cyclical and consumer-facing stocks but believes tobacco, pharmaceuticals, telecoms and, to an extent, the oil sector all represent good opp-ortunities for investment.

He said: “I am still very optimistic about the cash resilience of those businesses, the asset resilience of those businesses and their dividend-paying potential. Those are four sectors that we are very keen on and where we have substantial weightings currently and expect them to do well over the next three to five years.”

Woodford says he now believes these are worse economic conditions than in the early 1990s but says his own defensive approach should negate some of the threats .

He says: “The overall index has been very disappointing now for a very long time. I think we are now a lot lower than we were 10 years ago, for example, in terms of index performance but I think the asset class now is looking very bombed out and should deliver decent returns over a three to five-year per- iod and especially against other asset classes.”

“I would say that this is a very bad time to disinvest and on a three to five-year time horizon, I think this is a good time to put money to work in the UK equity market but you have got to be very selective.”


The third way

A recent Axa survey showed that when filling in insurance forms, 25 per cent of men lied about the amount they drink, with 10 per cent of women claiming to weigh less than they do. Who would have thought it?

Sense of gilt

Where to go? is the question on the lips of anyone who has been closely watching the events of the past few weeks.

Broker Talkback

Are the Tories right to call for a relaxation of enforced annuitisation rules due to the current financial crisis?

Yes 100%


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