THE summer’s turbulent financial markets could have left investors unsettled, but they need not panic. An expert in the field, Mads Pedersen, head of asset allocation at Barclays Wealth in London, offered his informed opinion on the situation and what the future might have in store when he visited the island.
The fall-out of recent months has left many investors re-assessing how they should position themselves.
Assessing the economic landscape in the light of the unsettling time, Mr Pedersen looked at likely scenarios for the global economy and strategies to take advantage of the value in markets, sectors and certain stocks.
‘This summer has been a highly interesting time for investors and raises many questions as to how the economic landscape will fare in the future,’ he said.
‘The central banks have responded well to recent financial events and helped ease fears of a market collapse. At Barclays Wealth, we expect continued negative headlines from the US economy and therefore continued volatility in the markets.
‘However, we still see an upside in equities, which are supported by attractive valuation, both absolute and relative to bonds and in balanced portfolios, and we recommend a moderate equity overweight.
‘In terms of commodities, we are confident that when the dust settles, fundamentals will again become the dominant force. Strong demand balanced with a limited supply for commodities will help keep most markets robust.’
Before joining his current employer, Mr Pedersen worked for Danske Capital, the asset-management arm of Danske Bank, where he was chief investment strategist and head of asset allocation.
He handled both absolute- and relative-return portfolios, with assets under management in excess of $50bn.
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