Market sentiment often focuses on the negatives, even when economic fundamentals tell a different story. Divergence in sentiment and data like this can present significant opportunities. Andrew Clifford, CIO at Platinum Asset Management, identifies two such global opportunities, commenting that “this is when money is made in markets”.
"Share prices are coming back and are really showing some quite interesting valuations… Indeed, this is when money is made in markets".
- Market is currently focused on negatives in key economic blocks such as Europe and China, however European growth and employment is improving, and China is recovering nicely.
- Sentiment is enabling us to buy companies in sectors like European banks and Chinese insurance at low valuations at a time of improving economic fundamentals.
- The real money can be made in markets by buying into these type of situations.