The outlook for 2015 at French manager Carmignac Gestion is being steered by concerns that the global economic cycle is being underestimated, which could lead to more volatility.
Didier Saint-Georges, member of the Investment Committee at Carmignac Gestion, said in his latest note that this volatility was a factor in deciding to target growth stocks and dollar denominated assets, as well as maintaining a “highly active management of levels of exposure to equity and bond markets alike.”
“Equity markets have lost much breadth in recent months, in the sense that the proportion of stocks outperforming their benchmarks has fallen considerably,” he said.
“This situation, which is affecting European more than US markets, is not insignificant. It reflects the shortage of convincing investment opportunities. This makes the challenge of stock-picking all the more acute and, given our concerns about the weakness of the economic cycle, highlights the importance of asset allocation and risk management to deliver a satisfactory return.”
To read Didier Saint-George’s full note click here: 2014 Dec Carmignacs_Note_UK_EN_BD