Mr Buxton, head of UK Equities at Old Mutual Global Investors is holidaying in the USA and sees much to cheer in the new world order being created by democracy even in the unlikely guise of Donald Trump. He says, against the backdrop of revulsion and incredulity something very important has happened and we may not be headed for disaster, despite the undoubted uncertainties.
In particular he seems glad to see the back of 'Davos Man' and the belief that an elite knows best how to manage the global economy. Never a fan of QE, negative interest rates and bond yields he is cheered by the fact that savers will have an incentive to invest as power shifts from central banks to people.
In his recent article he sees signs that the emerging new world order can be accepted, even slowly by the Chinese who recognise the world does not have enough demand for the goods they want to supply and will eventually focus on developing their internal economy of services and higher consumption. Yes he recognises that protectionist policies have had disastrous consequences in the past, but in this world changed for good, and ill, by globalisation it may be the time to move to fair rather than free trade. The experiment is getting underway.
The Trump election was probably the tipping point for longer dated fixed income investments. Sentiment was already against this asset class and capital values have been falling as eventually yields have turned from negative to positive. Last year quietly saw the turn of fortunes for value investing, with out of favour funds posting the best returns of the year.
Mr Buxton is a value investor. As well as his observations on the power of democracy his observations of his own style of investing is to look for value, choose well and stick with it. Experience is the key to his success he thinks.
Other experienced managers we are supporting in this category would be Nick Kirrage who manages Schroder Recovery and Schroder Income and Alastair Mundy of Investec who manages their Cautious Managed and UK Special Situations Funds. Call us if you want to know why.
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