Margetts Fund Management’s Toby Ricketts, who heads a number of multi manager fund portfolios, is maintaining his large overweight position in Asia and emerging markets because of low oil prices. FE Trustnet recently quoted him as saying:
“The concerns about the oil price have actually been a benefiting factor as it comes as a tax break for those economies, like China, which are reliant on importing energy. We were thinking about reducing our exposure after last year’s gains, but I think the low oil price will give them another leg-up.”
However, he is quick to note that the weaker oil price will continue to hurt certain emerging markets like Brazil and Russia given their status as oil exporters while weak oil prices will continue to support equity markets in Asia like India and China. He also cautioned that:
“…it was an easy decision to buy emerging markets in February and it isn’t now. The bargain has gone and though I still think they are good value, the overselling has reversed”
To read the whole article, Ricketts: Emerging market and Asia funds can keep rallying, go to the website of FE Trustnet.
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