Snakes & Ladders
For James Illsley, manager of the JP Morgan UK Active Index Plus Fund, the firm sees the much of what has happened so far as validation for the fund’s current position. The oil price boost to consumers has seen the firm move overweight retail firms like Marks & Spencer and WH Smith, and it too remains overweight banks which he expects to benefit from rising interest rates and tobacco.
While there are broad themes that can be drawn out for the UK market as a whole, with overall valuations so high, it is more important than ever to look at each stock on its own merits.
For McGarry the recent pull back in stocks has opened up a number of areas of opportunity and he says, in the current environment, earnings updates provide a good sanity check for investors. But, as always there is risk along with reward.
Moore is perhaps a little more cautious, pointing out that while avoiding the losers has always been important, with the markets as vulnerable as they are, there are perhaps a few more snakes on the UK All Share board than usual.
