It’s time to revisit US stocks and shares despite a strong showing on the markets this year, says an industry expert.
Traditionally, the markets dip in June, causing savvy investors to sell in May.
However some fund managers consider that US equities may pick up later this year due to high corporate earnings growth heading for somewhere near the 8% mark, says Simon Laing, Head of US Equities at Invesco.
To reach that goal, companies have to put a spurt on for the rest of the year following a poor first quarter due to extreme weather keeping sales down.
And so far, he argues, the Standard and Poor’s 500 has only given a 4% return.
“My feeling is not to expect further growth would be a mistake,” he said. “For that to happen, the market has got to stand still or we’ve got our sums wrong. The first is unlikely and the second remains to be proven.”
Laing does argue the most likely outcome is Invesco has not crunched the numbers correctly.
So, he says, fund managers have to look at valuations – if the assumption is the figures are wrong is correct, they won’t over value their investments; instead they will make a proper judgment.
“The result is if we make the right decisions, the returns will be good,” said Laing.
He advises other investors should do the same so they do not over estimate returns and get caught holding the wrong stocks.
Laing suggests Invesco is taking less of a position with Microsoft and Wells Fargo, but building with MasterCard and Gilead.
Investing for women
More women need to pay attention to their finances as they traditionally end up poorer in retirement than men, says Samantha Hurditch at BNY Mellon.
But attitudes are changing and more women are joining the workforce and have the cash to make the own financial futures more certain.
As a result, the firm has produced a special guide to investing for women.
“Planning for your financial future is important whether you are male or female,” said Hurditch.
“More women are now the family breadwinners, fewer are marrying and divorce is more prevalent. All these life events affect finances and women need to take stock of what this means to them and how to approach saving and investing.”
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