Investor sentiment report #2: The fightback has already begun

Published on 29 April 2020
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Investor Sentiment Report #2 Neil ShahInternational 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.

Summary

  • 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.

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