The pathway to a 'more normal' environment

Paul Moore, Chief Investment Officer at PM CAPITAL, says if you believe current stock market action you would think we are heading for a recession. His view is that current volatility is a continuation of a ‘two steps forwards and one step back’ recovery process. “Recession concerns are being driven by the now clear evidence that China’s economic adjustment will be more painful than the consensus had previously accepted. All the beneficiaries of China’s commodity boom are now liquidating assets… The flipside, however, is that consumers have been given a huge boost to their discretionary spending power thanks to the collapse in petrol prices, heating and anything commodity related. This follows the massive boost they received from lower interest rates, which they appear to have saved much of the benefit. So the consumer is in good shape and should underpin the developed economies.” In this video (VIEW LINK) he expands on the current market action where he believes investment opportunities lie as markets traverse the pathway to a more ‘normal’ environment.