Pick your stocks carefully

Each week, a professional investor tells us where he’d put his money. This week: Guy Davis of the Sarasin Global Higher Dividend Fund.

Equity markets have performed very well in recent years and are no longer cheap relative to their history. Compared with other asset classes, however, they look reasonably valued, so stocks remain popular, especially among investors who need stable, inflation-protected income. 

Investors should pick their stocks very carefully, however, as markets are in an unforgiving mood. The latest earnings season has shown that companies deemed expensive are disproportionately punished for a [...]