[GRTV] Global equities is a good place to be: Nikko
Nikko AM Head of Global Equities, Will Low, discusses his approach to successfully managing equities and provides his thoughts on current market conditions.
Monday, October 1st 2018, 5:00PM
Low was in New Zealand recently to discuss the current market and on forecasting future returns when picking global stocks.
He says markets are in "a very interesting stage" at the moment with the US increasing interest rates, however he is not bearish.
"Equities is a great place to be," he told Good Returns TV.
Since the global financial crisis 10 years ago much of the gains in equities have come from quantative easing and the resulting rise in asset prices.
Now the the US is increasing interest rates and heading into a period of quantitative tightening "valuation gains as a source of excess returns less likely," he says.
Nikko AM's approach is highly targeted on company selection and finding businesses generating strong cash flow.
While Nikko AM doesn't play disruption as a theme it does see changes in the market as being an area to find quality companies that can deliver high sustainable returns.
When asked whereabouts markets are at in the current cycle, Low says, "knowing exactly the road map is difficult."
"It's not our place to call market."
Likewise picking what could be the trigger for a downturn is hard, but he does suggest one of them could be political.
"The reshaping of political forces is likely to be the trigger for a downturn."
Despite that Low is positive on finding relative winners in the market
WATCH Will Low on GRTV to get the full story.
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