For Gavin Haynes, managing director at Whitechurch Securities, when sentiment becomes overly pessimistic this provides good opportunities for those who can invest without being fixated on short-term market fluctuations.
However, he is cognisant to not be over-confident: “We cannot be certain that the Chinese economy will avoid a hard landing or that the recent rally in energy and commodity prices is sustainable.
“Therefore, it is important to have a well-diversified portfolio across different regions and asset classes combined with ‘insurance’ positions to cover different scenarios.”
He adds: “We have very little direct exposure to commodities, although for the time being it feels as if commodities have found a floor the outlook still remains unclear.
“Our exposure is gained indirectly by investing with some managers who are selectively buying into miners. This is our preferred method of gaining exposure and the most palatable in terms of risk.”
