It is probably true that as a fund manager one has a natural wish to forecast a rise in the stock ma...
It is probably true that as a fund manager one has a natural wish to forecast a rise in the stock market. Fee income falls when the value of the fund falls and the manager gets grief from the marketing department for making gloomy predictions, as subscriptions will be impossible to garner. Consequently, if in doubt about the outlook for the forthcoming year, most managers predict a rise of 0% to 10%. The advantage of this approach is that markets usually rise, especially when there is universal nervousness. This is the situation now, as shares are both cheap and there is a lot of 'angst'....
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes