Longview: Concentrate global portfolios in western big cap equities
In this video Chris Watling, CEO, Longview Economics discusses what he terms the dichotomous global growth pattern. This is a pattern of strong domestic service sectors in the US and the UK in conjunction with the rest of the globe seeing poor capex, poor trade and poor industrial production. Watling says the concerns that can be derived from the weak data points has lead to deterioration in the ‘breadth’ of the market. “Normally when you get a flat market and deteriorating breadth it is the pre cursor for a bear market. People are getting very worried about these factors. I think personally it is somewhat overdone. I am conscious that there may well be a little bit of a shake out in US equities later this year. But really I think the cyclical bull market in the US is alive and well.” On the back of this "global portfolios should be concentrated in western big cap equities" is Watling's message to investors.