Now is not the time to throw in the towel and buy the 'ultra' defensive sector of the market ac...
Now is not the time to throw in the towel and buy the 'ultra' defensive sector of the market according to Trevor Green, Manager of the Credit Suisse Growth Fund.
Green expressed his outlook for the UK Growth Market this week and warned that some ultra' defensive sectors had been outperforming the market for over 18 months. To buy them now, said Green, would be 'looking into the rear view mirror'.
Green explained: "I am making investment decisions on the future. I am not basing decisions on today's prospects, but on six months' forward or even more."
He added: "Certain defensive sectors such as food retailers and spirit companies, look expensive against historical valuations and cracks are starting to appear in some of the companies supposed defensiveness."
On a forward-looking basis, Green pointed to growth areas in the market including service companies and selective technology companies, which he thinks are on attractive valuations and present an opportunity which has not been seen for a long time.
Green said: "While equity markets will remain volatile, even market mood swings can be exploited to pick up good quality growth companies on appealing valuations. On a stock-by-stock basis, there is the time to buy selectively in the UK market. With the FTSE 100 nearly 2000 points off its high, let's look backwards, not forwards."
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