Mountstone create and manage bespoke investment portfolios for wealthy families, charities and trusts. CEO James Keen publishes a monthly investment update for their clients. Here is his latest communication published on 11th September 2015:-
During a torrid August for world equities all developed and emerging markets plummeted, dragged down by fears of continuing slowdown in China and the knock-on effect that this may have on the prospects for global recovery.
Now that the initial hiatus has died down and since markets have stabilised for the time being, we feel that it is time to consider assets that have been sold indiscriminately, regardless of value.
UK equity markets have been very badly affected, with the FTSE 100 falling 14.76% peak-to-trough. Whilst this has been justified across some sectors of the index (mining and oil stocks for example), many others have been unfairly tarnished, panic sold in the face of a worsening positon in China to which they are not really exposed.
With the FTSE 100 currently sitting at 6171, we believe that the recent sell-off has created good value. This month we look at the relative performance of differing sized UK companies and consider the reasons why now might be a good time to buy unloved UK equities, particularly for those who have very little exposure at present.
