Choose quality as markets climb

A professional investor tells MoneyWeek where he’d put his money now. This week: Neil Cumming, investment director, UK Equities, PSigma Investment Management on where to invest as stockmarkets hit highs.

Global stockmarkets are performing strongly. The US Dow Jones index has recently hit a new all-time high, although the wider equity indices are still shy of this achievement. In the UK, this has helped the FTSE 100 to move above the 6,000 level, reaching heights not seen for more than five years.

The FTSE 250 has achieved even greater returns over the last year, fuelled by a wave of takeover activity. Its relative outperformance has been helped by the poor showing from FTSE 100 heavyweights such as BP and Royal Dutch Shell, despite the strong oil price. Until recently, you could also add Vodafone, which has been battling to improve its image and deflect concerns that profits at its core mobile-phone unit are under threat. Another major prop to markets has been the large number of share buy-backs as firms raise balance-sheet gearing to reflect the cheapness of debt finance compared to equity finance.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.