Asia and Europe benefitting from market slump - Barings

Tim Scholefield, head of equity at the group, explained how investor confidence can be slow to develop yet quick to evaporate. “A rapid loss in market confidence, such as we have seen in recent weeks, can often result in share prices diverging sharply from their fundamental worth,” he said. “A sudden fall in market confidence can therefore be a good opportunity for discriminating investors.” As an example, Scholefield picked out well capitalised companies with revenue driven by rapid economic growth in the developing world. He said that while there is no obvious reason as to why...