Graham Duce

“Anxiety over rising default rates has started to come to the forefront, as evidence suggests there will be a further increase in sub-prime defaults. This news has reduced the buying momentum within the markets as investors take profits and review risk positions. We feel fundamentally the US consumer will continue to spend, given income and employment remains strong. Any equity correction caused by the sub-prime default concern could be a good entry point for more fundamental and value-based investors considering the cheapness of equity markets.”