Be selective in fully valued equity markets, Trimark Fund manager says

Michael Hatcher favours credit-card companies over banks.

Sonita Horvitch 7 June, 2017 | 5:00PM

Michael Hatcher, head of global equities and director of research at Trimark Investments, says the favourable economic backdrop for stocks in both developed and developing markets is being fully reflected in equity valuations. "It is therefore prudent for investors to be careful about what stocks they currently own and be highly selective in adding new names to their portfolios."

Global economies and corporate earnings continue to improve and interest rates remain at low levels -- all positive for stocks, says Hatcher. Furthermore, he says, this solid global economic backdrop is "overshadowing the political concerns that followed Britain's Brexit vote last June and the vote in the United States that put Donald Trump in the White House last November." More recently, France's choice in May of centrist and pro-European Union candidate Emmanuel Macron to lead the country "was a boost to investor sentiment."

The global equity market has been putting on a strong showing, Hatcher notes. The MSCI ACWI Investable Market Index, an all-country world index, registered a total return (in U.S.-dollar terms) for the first four months of 2017 of almost 9%, equalling its performance for the whole of 2016.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Anheuser-Busch InBev SA/NV ADR53.76 USD5.39
Mastercard Inc A295.68 USD0.37
Microsoft Corp213.67 USD-0.30
Oracle Corp57.39 USD-0.24
SAP SE ADR153.49 USD0.54
Visa Inc Class A192.55 USD0.18

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Sonita Horvitch

Sonita Horvitch  

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