Six quality contrarian plays

A professional investor tells MoneyWeek where he'd put his money now. This week: Clive Beagles, manager of JO Hambro Capital Management UK Equities Income Fund.

A professional investor tells MoneyWeek where he'd put his money now. This week: Clive Beagles,manager of JO Hambro Capital Management UK Equities Income Fund.

It looks like growth in UK equities will be solid but unexciting in 2005. Because our focus is on stocks yielding more than the market, this leads us to adopt a naturally contrarian style. Many commentators, for example, are negative on the dollar at present, which continues to have a significant impact on some of the larger UK companies with dollar exposure. But I believe this could be a year when the dollar does not decline - note that US interest rates are likely to rise considerably during 2005. Another contrarian call we're making is on UK interest rates. Despite unclear signals from the housing market and a slight increase in inflation, I think they'll be falling by the end of the year.

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