Anthony Bolton: the market won't wait

Investors who are too bearish in a crisis like this risk missing out on the recovery, says Anthony Bolton, non-executive director of Fidelity International,

© 	Nick Liseiko Photography

“The stockmarket won’t wait for things to get better,” reckons Anthony Bolton, the former star manager who ran the Fidelity Special Situations fund for 28 years before retiring in 2007. So investors who are too bearish in a crisis like this risk missing out on the recovery. “‘The question you need to ask yourself is ‘am I happy to buy at today’s prices?’,” he tells Bloomberg. “There is this temptation always to keep waiting to get a better chance. But you might not [get one].” If you think that current valuations are attractive on a long-term view, it’s an “opportunity to buy”, regardless of the short-term economic outlook. 

Advertisement - Article continues below

Bolton began investing again at the end of March, he tells the Financial Times, after increasing his cash holdings last year because valuations were stretched. He didn’t disclose what he is buying, but suggested that troubled businesses in key sectors were likely to benefit from state support around the world. “There’s almost an element of governments competing. If we save the [UK] airlines, the Germans are not going to let Lufthansa go bust.”

A high-profile return from retirement in 2010 to run the Fidelity China Special Situations fund ended after four years of lacklustre returns, but Bolton still sees opportunities there: Chinese and emerging-market firms are well placed as they know how to make decisions in fast-moving environments, he tells Investment Week. More broadly, investors should look for management teams that are “flexible and pragmatic” to find firms that will be resilient in this crisis.




The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Trade-war ceasefire boosts stockmarkets

Stockmarkets sighed with relief after the G20 summit in Japan brought a handshake between Donald Trump and Xi Jinping.
4 Jul 2019

Most Popular

UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020