View more on these topics

Yousefian says beaten-up stocks must wait until 2010 for recovery

OPM Fund Management chief investment officer Tony Yousefian is predicting that 2009 will be a year of two distinctly different investment themes.

The mixed-asset multi-manager specialist says the first half of 2009 will be typified by defensive capital preservation which will reverse towards the end of the second half of the year, leaving room for better earnings’ prospects for equities in 2010.

He says: “It is at this point that we anticipate the badly beaten-up early cyclical stocks will begin to outperform. It is this leg of the market movement that stands a better chance of being sustained than any other bounce in the markets through to the middle of next year.”

Fund managers with defensive quality stocks with minimal or no exposure to consumer-facing companies will outperform the market, says Yousefian. In this group, he favours JO Hambro UK opportunities fund manager John Wood along with Stephen Bailey and Jan Luthman who co-manage the Walker Crips UK high-alpha fund.

In general terms, large caps, utilities, pharmaceut-icals, telecommunications, infrastructure and exporters are among his favoured sector plays. He says investors who prefer a less choppy ride in equities should stick to corporate bonds next year.


IFAs get free online guide to CDS levels

Jubilee Financial Products is publishing a weekly overview of credit default swap levels on its website to help advisers evaluate the counterparty risk of major UK issuers in the structured product market.

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment