Speaking at the Morningstar Investment Conference in Sydney last week, Lazard Asset Management portfolio manager Nicholas Bratt said he would “never touch” a bond except in a deflationary environment.
“We are not in a deflationary environment, so carefully chosen equities around the world present a very attractive investment opportunity for the next five years or so,” he said.
Also speaking at the Morningstar conference, Magellan Flagship Fund portfolio manager Chris Mackay pointed to the fall in the US 10-year treasury yield last Wednesday night to 2.50-2.55 per cent, saying he was “virtually certain” global equities would deliver a “materially higher” return over the same time period.
Mr Mackay added that a number of the major macroeconomic concerns were “off the table” and the Australian dollar would be more pressured over the next 10 years.
“Therefore, we remain cautious, interested, but sanguine over the longer period,” he said.
Mr Mackay also reiterated his concern about China, particularly with stressed bank balance sheets and an “apartment property bubble”.
