Markets are moving on a tightrope: Manager

But Capital Group’s Hilda Applbaum maintains we’re headed for good long-term growth

Michael Ryval 7 November, 2019 | 1:49AM
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Man walking on tightrope

Despite worries about global growth and ongoing U.S.-China trade tensions, equity markets are moving upwards, and veteran stock-picker Hilda Applbaum remains upbeat and focused on bottom-up stock selection.

Delicate growth
“We’ve all heard the expression ‘bull markets don’t die of old age,’ but I would suggest that bull markets probably become a little more fragile,” says Applbaum, a San Francisco-based portfolio manager at Capital Group Companies and lead manager of the 5-star rated $1.2 billion Capital Group Global Balanced Fund. “That has a lot to do with the fact that valuations start to get stretched. I do see a reasonable runway for the equity markets. But the analogy I would use is that it feels like we’re walking a tightrope. There is a safe path to get us from here to the end, without falling. But it takes much less of a wind or bad news or a disappointment to make you topple off that tightrope, than if you were on more solid ground.” 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
AstraZeneca PLC ADR55.56 USD0.00Rating
Capital Group Global Balanced Canada F15.64 CAD0.01Rating
Taiwan Semiconductor Manufacturing Co Ltd600.00 TWD0.00Rating

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Michael Ryval  

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