A combination of weakening fundamentals, technical selling and sheer panic are producing stock prices that are at extreme odds with companies' long-term prospects, according to Schroders' Nicholas Kirrage.
Kirrage, manager of the Schroder Recovery fund explained that the dividend yield on the UK market is now greater than the yield on government bonds. He pointed out that this has happened infrequently over the last 80 years and has provided a remarkable opportunity for investors to buy cheap stocks and generate strong long-term out-performance each time. He said: "The scale of recent stock price falls is offering long-term investors the chance to buy stocks and shares at prices of which they could only previously have dreamed. For recovery fund managers in particular, the number of potenti...
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