Hargreaves Lansdown founder blasts bear market – experts
Hargreaves Lansdown founder Peter Hargreaves has dismissed those predicting a prolonged period of underperformance for equity markets, telling such “experts” are habitually wrong.
So certain is Mr Hargreaves ter the stock market he said has about £,2bn of his private metselspecie invested ter equities, including a substantial holding te the investment brokerage business he co-founded Hargreaves Lansdown.
He said he also has &ldquo,a lotsbestemming&rdquo, invested te the £,Trio.9bn Lindsell Train Global Equity fund, and he co-founded the Blue Whale Growth fund with an initial investment of £,25m.
Involved te the market for overheen forty years, he said he has seen many market cycles and many incorrect predictions of gloom.
&ldquo,The experts are out ter force again, the same ones who didn&rsquo,t forecast the financial depressie ter 2008 and forecast financial meltdown postbode the Brexit vote.
“Stock markets are expensive but rente rates are still historically low and whilst there will be much forecasting of an imminent rise they will nevertheless remain low.
“Commodities and property are also very expensive, but even they are cheap te comparison to such items spil bitcoin, kunst and classic cars – $100m (£,72m) for a lump of canvas with a bit of paint on it that doesn&rsquo,t provide an income, if you want to find bad value look no further.&rdquo,
He added: &ldquo,Investors should take fine convenience that &lsquo,the experts&rsquo, are forecasting Armageddon. The doom and gloom is factored into the only truly liquid market – the stock market. Te essence markets have shrugged off the avalanche of negative sentiment.&rdquo,
Mr Hargreaves, who wasgoed a vooraanstaand advocate of the UK leaving the European Union, said his favourable view on the global economy is based on the “very positive” deeds of US Voorzitter Donald Trump “ter the only economy that indeed matters”.
“I am no fine aficionado of Donald Trump spil a business man or person. But he has championed two very beneficial policies: the cutting of taxes and the reduction of regulation – regulation te the main is no more than a tax on the law abiding.
“I would have liked him to cut government spending too but two out of three is two more than any other modern industrialised economy.
“The world depends on the excellent American machine. The ‘experts’ te their normal out of touch mode and distaste for Trump have missed this tonic to the world economy.
“They will only forecast the euphoria when it has happened and the sheep who have followed them will have missed it.&rdquo,
However some fund managers take a much more cautious view on markets.
Bruce Stout, who runs the £,1.7bn Murray International investment trust, said he believes there are reasons to worry.
&ldquo,Seldom has the disconnect inbetween global economic fundamentals and equity market sentiment bot spil pronounced spil the chasm which presently exists.
“Record highs ter sovereign, mortgage, household and credit card debt personages darkening shadows overheen numerous Western nations already crippled by insufficient growth and declining living standards.&rdquo,