Global markets are about to present some good value opportunities for investors over the coming 12 months, a global portfolio specialist has told a local adviser briefing.
“We think we’re in a progression away from … call it the glass being half empty now turning to the glass being a bit fuller, given the fact that valuations are very compelling and we’re through the bulk of the write downs in the financial crisis,” T Rowe Price international portfolio specialist Kurt Umbarger said.
As such Umbarger feels the financial sector is one that has some good value investment opportunities at present.
“We’ve moved from the Bear Sterns event where the market was starting to discount because there were going to be a lot of bankruptcies and a lot of complete door shuttings,” he said.
The market now perceives that the bulk of the pain is over in the financial sector which means many of the current valuations are very attractive, according to Umbarger.
He pinpointed the US consumer discretionary retail market as another with a compelling valuation proposition.
“The US consumer has been under pressure particularly over the last 12 months and that’s likely to continue as the residential property market really is not showing any signs of life, Umbarger said.
He predicted a stabilisation of the property market to happen either next year or the year after and said it would be then that consumer spending would be reinvigorated.
“It’s been an area of weakness but we’re cautiously looking at it as a potential area of [value] add,” Umbarger explained.
