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

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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...

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