Volatility struck stock markets during the first quarter of 2018, and while this meant fund managers saw declines in some of their holdings, it also presented buying opportunities.
The year began with strong performances from cyclicals – those stocks impacted by the ups and downs in the global economy - and further momentum from those companies that had already delivered strongly in 2017.
Omnis European Equity Fund manager, Cédric de Fonclare, explains how while the market volatility we experienced in February put a temporary end to this environment, it also created opportunities for dedicated stock pickers, such as himself, who want to buy quality companies at more reasonable prices.
Turning to North America, Jeff Rottinghaus, manager of the Omnis US Equity Fund, explains how the volatility was largely caused by fears of inflation and rising interest rates in the US. He expects to see a prolonged “choppy environment” for the rest of the year, given peaking economic data and high valuations (prices) of certain areas of the market. However, he expects to take advantage of further volatility and will upgrade the portfolio to higher conviction ideas as some stocks sell off.
Stathy White and Christopher Neal of Thomas White International say they are seeing the best opportunities in Europe and Japan, impressed with strong company earnings. Therefore, the Omnis Developed Markets (Ex UK, Ex US) Equity Fund is focused on selecting companies with tight cost controls that are disciplined in terms of spending the cash they earn.
We hope that you find the videos interesting and informative. However, please remember that these reflect the views of each managers held at the time of recording and that these can and will, change over time.