International investors may still be reeling from the severity of the recent market sell-off, but most are confident global equity markets will rebound. ‘At some point, the planet will normalise’ said one UK investment manager.
There is also widespread agreement that the sell-off has created great buying opportunities, especially for medium- to longer-term investors. Some of ‘the most stable businesses in the world’ are now very cheap, after share price falls of 60–70%, says one US trader.
On both sides of the Atlantic, managers have cash to deploy. Some of this was raised by sales intended to preserve capital during the sell-off, whereas several funds report recent cash inflows and increased client enquiries now markets appear to have bottomed.
- Investors believe global equity markets will rebound.
- ‘Some of the most stable businesses in the world’ are now very cheap.
- Cash is available to deploy and managers are hungry for recommendations.