The US offers one of the best opportunities for investing, in the eyes of Ian Brady, director of the...
The US offers one of the best opportunities for investing, in the eyes of Ian Brady, director of the Schroder North American Fund.
He said the introduction of lower interest rates has historically been positive for investors but it can take anywhere between six, nine or 12 months before the cuts can really take effect. Brady added: 'We are now on a par with the recession. Greenspan has been cutting rates for industrial America and the consumer, who is leveraged and who cannot be afforded to collapse.'
Ian Cooke, manager on the portfolio, said that easy funding contributed to the bubble of excess and that over capacity in telecoms makes it very difficult to go back to the returns it produced in the past. Cooke expects growth in the US to be around 2%-2.5% next year. In addition the group is factoring in corporate profits growth of around 5% in 2002. He said: 'We expect volatility to remain high. We are not looking for big returns, we are looking for mid-teen growth from a process of good stock picking.' Cooke believes that active fund managers are in for a better time going forward, and that with technology being so cyclical, valuations are becoming attractive.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till