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,

“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. 

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.

Recommended

The British equity market is shrinking
Stockmarkets

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
Robin Geffen: dividend cuts aren't all down to Covid
Stockmarkets

Robin Geffen: dividend cuts aren't all down to Covid

The seeds of recent dividend cuts and cancellations were sowed many years ago, says veteran investor Robin Geffen.
25 Oct 2020
Dividend payments will take a long time to recover
Income investing

Dividend payments will take a long time to recover

Companies are gradually resuming dividend payouts, but we can expect only a modest rebound in 2021, says Cris Sholto Heaton.
25 Oct 2020
“Big Finance” comes out of its decade-long slump as bankers bounce back
Stockmarkets

“Big Finance” comes out of its decade-long slump as bankers bounce back

The financial sector was hammered by the crisis of 2008. Now, bankers are rediscovering their swagger, says Matthew Lynn.
25 Oct 2020

Most Popular

Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020
Why commodities could be the best investment for 2021
Commodities

Why commodities could be the best investment for 2021

There’s plenty for investors to worry about right now. But things will inevitably recover. And the sector most likely to do best when they do, says Jo…
22 Oct 2020
UK post-Covid recovery stocks: these 20 companies could be set to rocket
Share tips

UK post-Covid recovery stocks: these 20 companies could be set to rocket

Finding stocks with the potential to rise tenfold or even further is far easier said than done. But the pandemic has produced the most promising backd…
22 Oct 2020