European investors who are looking to increase their exposure to US equities are often looking to do so from a safe haven perspective. But they would do well staying clear of quality companies, unless they believe a recession is imminent.
Record-low interest rates are the number-one risk to investors, even if they stay at their current levels, said Greg Woodard, who is part of the management team of the GAM Star Global Quality Fund.
The big shift from the growth style of investing into a value style has been played out a number of times, but there are reasons to believe it could be an unwise move this time around.
While fund managers across asset classes endorse the value of long-term investing, it is natural to question whether these individuals themselves practice what they preach.
Growth stocks have traditionally outperformed their value counterparts in fast-growing emerging economies, and fund selector preferences are aligned accordingly. But does this still make sense in the context of decelerating EM growth and a change from export-led to consumer-led growth?
Fund selectors in The Netherlands prefer value over growth stocks not only in developed markets, but even in the emerging market equity space.
Fund selectors from France plan to increase allocation to absolute return, but are not very keen on buying alternative ucits funds.
Madrid-based fund selectors voiced a strong preference for large cap value stocks at Expert Investor Spain last week.
Finnish fund selectors much prefer value stocks over growth stocks in developed markets.
Finnish fund selectors much prefer value stocks over growth stocks in developed markets.
