GLOBAL STRATEGIST GIVES EQUITABLE ADVICE
Guernsey News, 13 November 2009 – A LONDON markets expert advised a gathering of business people in Alderney that equity is still a good long term investment, despite equity markets being irrefutably over bought.
Global strategist at Collins Stewart, Rob Jukes, explained that equity prices had been rising for some time and there will almost certainly be a short-term correction.
However, looking out across the investment horizon, he stated that there is still a lot of investor capital on the sidelines awaiting reinvestment. This could potentially flood the market if a good entry point presents itself.
Mr Jukes said: “After the Lehman collapse, investors beat a stampede-like retreat from all risk assets, shunning return almost altogether in favour of assets of the lowest risk and shortest duration – cash and government bonds. Now though, as risk premiums fall and with interest rates remaining low, investors will be enticed once again back up the risk curve.”
“At the moment there is the potential for people to be too short-sighted, see only the impending correction and miss the bigger picture which includes investors waiting to join the equity party. In ‘brokers speak’, we would see any correction as a buying opportunity,” he added.
Mr Jukes started work in financial markets in 1996 at PaineWebber as a bond analyst. He then spent 10 years at Credit Suisse in various posts from European economics, quant equity strategy and finally global equity strategy. In 2007 he joined Collins Stewart and is a member of both the asset allocation and stock selection committees.
The event, which was held at the Braye Beach Hotel in Alderney, was well attended.
Head of Collins Stewart in Guernsey, Charlie Roger, said: “Collins Stewart is a global company and we pride ourselves on bringing international expertise to our local offices. Alderney is sometimes missed off the financial map when it comes to events such as this, so we wanted to reconnect and communicate some interesting and thought–provoking arguments for the population of the smaller Channel Island.
“Robert is an excellent speaker and very good at making technical and complicated issues accessible and interesting.”
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