Crispin Murray, Head of Equities at BT Investment Management, says stock and sector volatility will increase due to low growth and a range of disruptive forces. “In every sector and every industry there is unprecedented amount of change that is occurring… Historically when you picked a sector it was because there was some great industry structure that was giving you improving returns or the cycle was helping improve returns.” He says this strategy doesn’t apply in today’s environment and investors need to look at individual companies and how they are adapting. “Today what you are looking at is companies ability to respond to change. And secondly how the market is pricing certain stocks and their ability to respond to change… So what we are looking for is in each sector the company which has been either discounted the most or has got the most appropriate response.” In this video Murray provides an example of a top 20 stock that meets his criteria.
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