Ted Scott: Stockpile equities if they fall a further 5%

clock

F&C's Ted Scott said if UK equities dive a further 5% they will be worth stockpiling, despite the risk of a double-dip recession.

The director of global strategy said the market has been dramatically oversold and is set to bounce back in the event of eurozone policymakers coming up with a solution to the debt crisis. He believes, unlike the last financial crisis, the valuation floor is not far below current levels due to bad news already being discounted by the market. "Share prices are already implying a significant downgrade in earnings over 2011/12, and if equities fall a further 5%-10% they will be worth accumulating despite the risk of recession," said Scott. "Markets are clearly oversold and overdue a t...

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

Join

 

Already a Professional Adviser member?

Login

More on Investment

AllianceBernstein bags two SDR labels on deadline day

AllianceBernstein bags two SDR labels on deadline day

Focus labels dominate market

Cristian Angeloni
clock 02 April 2025 • 3 min read
Investors take group action against RL360 over collapsed funds

Investors take group action against RL360 over collapsed funds

Claim brought to Isle of Man to seek compensation for losses

Isabel Baxter
clock 27 March 2025 • 2 min read
Watch Professional Adviser's Working Lunch on Baillie Gifford's Scottish Mortgage trust - A World of Opportunities

Watch Professional Adviser's Working Lunch on Baillie Gifford's Scottish Mortgage trust - A World of Opportunities

Catch up on the discussion

Professional Adviser
clock 25 March 2025 • 1 min read