Slow-burning Recovery Stocks can Raise your Portfolio from The Ashes
Although financial gloom is all over and President Trump is triggering a rumpus with his 'America initially' approach, the UK stock market remains unfazed.
Despite a few wobbles recently - and more to come as Trump rattles international cages - both the FTSE100 and larger FTSE All-Share indices have actually been resistant.
Both are more than 13 percent higher than this time last year - and near to tape-record highs.
Against this background of economic uncertainty, Trump rhetoric and near-market highs, it's tough to believe that any exceptional UK investment chances for client investors exist - so called 'healing' circumstances, where there is potential for the share rate of particular companies to increase like a phoenix from the ashes.
But a band of fund managers is specialising in this contrarian kind of investing: purchasing underestimated business in the expectation that gradually the market will show their true worth.
This undervaluation might arise from poor management leading to organization errors; an unfriendly financial and monetary backdrop; or broader concerns in the industry in which they operate.
Rising like a phoenix: Buying undervalued business in the hope that they'll ultimately soar needs nerves of steel and infinite patience
Yet, the fund managers who buy these shares believe the 'problems' are solvable, although it may take up to five years (occasionally less) for the results to be shown in far greater share rates. Sometimes, to their discouragement, the issues show unsolvable.
Max King spent 30 years in the City as a financial investment manager with the likes of J O Hambro Capital Management and Investec. He says investing for healing is high threat, needs perseverance, a neglect for consensus financial investment thinking - and nerves of steel.
Although financial gloom is all over and President Trump is triggering a rumpus with his 'America initially' approach, the UK stock market remains unfazed.
Despite a few wobbles recently - and more to come as Trump rattles international cages - both the FTSE100 and larger FTSE All-Share indices have actually been resistant.
Both are more than 13 percent higher than this time last year - and near to tape-record highs.
Against this background of economic uncertainty, Trump rhetoric and near-market highs, it's tough to believe that any exceptional UK investment chances for client investors exist - so called 'healing' circumstances, where there is potential for the share rate of particular companies to increase like a phoenix from the ashes.
But a band of fund managers is specialising in this contrarian kind of investing: purchasing underestimated business in the expectation that gradually the market will show their true worth.
This undervaluation might arise from poor management leading to organization errors; an unfriendly financial and monetary backdrop; or broader concerns in the industry in which they operate.
Rising like a phoenix: Buying undervalued business in the hope that they'll ultimately soar needs nerves of steel and infinite patience
Yet, the fund managers who buy these shares believe the 'problems' are solvable, although it may take up to five years (occasionally less) for the results to be shown in far greater share rates. Sometimes, to their discouragement, the issues show unsolvable.
Max King spent 30 years in the City as a financial investment manager with the likes of J O Hambro Capital Management and Investec. He says investing for healing is high threat, needs perseverance, a neglect for consensus financial investment thinking - and nerves of steel.