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.