Investing Show: Banks are suffering but they’re good value in an expensive market, says Richard Buxton
Investors need to be bold to hold banks right now, but experienced fund manager Richard Buxton is sticking to his guns.
He reveals why he is looking for value, as defensive stocks look expensive.
And with the stock market soaring even as the pound has taken a beating, he explains what’s going on and why that means big blue-chip dollar earners could make a good buy.
‘Because of the preponderance of multi-nationals, big dollar-earning companies, it’s just straight translation into profit upgrades,’ the chief executive of Old Mutual Global Investors and UK Alpha fund manager said.
‘If you look at the Footsie in dollar terms it’s absolutely flat, but in sterling terms we are just going up as the currency gets weaker.’
Also on this show, Simon Lambert, of This is Money, Richard Hunter, of Wilson King IM and Nick Batsford of TipTV discuss how long the pound can flatter company figures and get some lessons from Warren Buffett.