Stock and futures exchanges to benefit from the coming volatility

Stock and futures exchanges to benefit from the coming volatility. Two fund managers quoted in today's AFR are backing stock exchanges as good investments. Ashley Pittard of PM Capital says We love exchanges at the moment, particularly future exchanges. Intercontinental Exchange (ICE) operates a derivatives exchange and clearing house in Europe and also the NYSE in the US. Due to the low-interest rate environment since the GFC and low volatility over the last two years, trading on ICE has fallen significantly. We believe the current share price of ICE does not factor in the fact that this trading activity will rebound as the global economy improves and central banks increase interest rates. Garry Laurence, The global fund manager at Perpetual says on the financials side, our overweight is mainly in global stock exchanges such as Nasdaq and Deutsche Boerse. We see earnings for both these companies benefiting from increased volatility in global markets. They both generate very strong, free cashflow and deploy their capital efficiently. (Source (paywall): (VIEW LINK)


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