Crispin Murray has identified four equity market trends that investors can use in 2014
Crispin Murray has identified four equity market trends that investors can use in 2014. Firstly, in a low growth environment the market is punishing companies lacking cost discipline. Secondly, companies that are using capital poorly via expensive acquisitions or chasing growth are being de rated. Thirdly, cycles matter, Murray says it's very hard to fight headwinds and you are better off waiting to see cycles bottom and turn and then become tailwinds. Finally, the market is rating predictability over growth. The market would rather see a company growing at 5% in a clear and transparent way than a company stretching to get 8-10% growth but spending a lot of money and taking risks to achieve that. When it comes to using these themes in 2014, Murray says Macquarie, Asciano and 21st Century Fox are examples of companies likely to benefit benefit from these trends.