60 seconds on where's the value in European equities?
In European equities this cycle, value versus growth has really been the key debate.
Of course, growth has been the pre-eminent style in this world of quantitative easing and zero interest rates. Logically, in the second half of 2019, I would expect that to start to fade.
The reason for that is we are starting at such an extreme level. So I can now stand in front of you and say value has never been cheaper relative to growth, including in the TMT bubble.
What sort of sectors might that include, we overweight financials, one smaller sector that we think is a really good investment opportunity at the moment is the oil services sector. Very unloved, very depressed and we are investing in that sector for the recovery we expect to see. But it is a value sector and it is very out of favour, so if we expect growth to fade in the second half of 2019, that’s the part of the market we should be focusing on.
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