Salient to Investors:
Dominic Rossi at Fidelity Worldwide Investment said:
- He is looking to buy markets at these levels, particularly US stocks, amid a sell-off exaggerated and exacerbated by poor positioning from hedge funds.
- Long-only investors had largely maintained their asset allocations, but there has been a massive contraction of hedge fund investments in assets tied to growth.
- When hedge-funds gets caught, they sell first and ask questions later.
- Low valuations will lure investors back into the market and end the current spiral downward.
- US stocks will lead the rebound – to a new high in 2015 – led by a rally in tech, biotech and media companies.
- Fidelity Worldwide is overweight in US equities and very underweight in emerging markets.
Read the full article at http://www.bloomberg.com/news/2014-10-16/fidelity-s-rossi-buying-stocks-as-hedge-funds-get-caught.html
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