UK overseas earners and selective US names that have sold off were on the shopping list of Richard Stammers, investment strategist at European Wealth.
He added: “Equally we will be looking for any interesting opportunities this may throw up, such as dollar-denominated UK bonds, which are likely to be sold indiscriminately by foreign investors.
“We will however retain some cash given the likelihood that volatility is likely to continue in the short term, and there will be future opportunities that we will hope to take advantage of.”
Richard Philbin, CIO at Wellian Investment Solutions, urged investors to look beyond the “eye of the storm” to a longer-term view of where markets are headed.
“Everything looks as black as it can possibly be. But we’ve gone through this kind of thing before with the ERM crisis, Black Monday, Fukushima and Lehmans, and we always come out the other side.
“When you invest it should be for the medium to long-term and you should be aware of the degree of risk that you are willing to take for the degree of return you are hoping to achieve. Construction and property stocks have all been absolutely slaughtered today but if you have a diversified portfolio it is time to think about the future.”
He added: “It will be interesting over the next six months to see which managers have played this well.
“In reality, this is the perfect opportunity for active managers to show their worth. Even though the market might be incredibly volatile, there will always be different opportunities when stocks are going up or down in different weights. We’ve seen some very good numbers from resource stocks this morning, for instance.”
