The worst of the global banking crisis engulfing stock markets has come to an end following Lehman Brothers' bankruptcy, prominent financials sector fund manager Ken Murray explains.
Murray – the Blue Planet Worldwide Financials, European Financials and Financials Growth and Income investment trusts manager – says the weekend’s events on Wall Street mark the tail end of the credit crunch-inflicted bank decline.
“The problem with the stockmarket is that it only deals with the present,” Murray says.
“We have always been forward looking, and the outlook is very good. Now is not the time to panic, maybe it was time to panic a few months ago, but not now.”
Murray says the Blue Planet team was not surprised by the major bank failures in the US.
“Last year we actually identified both Bear Stearns and Lehman Brothers as companies that could go under,” he says.
“At the time, we saw that only a 4.6% negative variation would cause Lehman to lose its capital.”
The Blue Planet manager does not envisage any more major bank difficulties, as the major players have become “ultra conservative”.
Murray says while he would not invest in US or UK banks, the global share slide has opened up “once in a lifetime” buying opportunities elsewhere.
“There are tens of thousands of banks out there and the number affected by this is very small,” he says.
“There are enormous opportunities out there – particularly in India, Russia, Greece and South East Asia.”
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Has run Cautious Managed fund since 2011
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Invested from 2006-2011