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Alternative Market Briefing

Current market volatility a compelling reason to buy Canadian equities, says AlphaNorth

Wednesday, October 12, 2011

amb
Steve Palmer
From Komfie Manalo, Opalesque Asia:

Steve Palmer, president and CEO of Toronto-based hedge fund manager AlphaNorth Asset Management said that the current market volatility is not yet as severe as during the market meltdowns experienced between 2000 and 2002 and through the 2008 financial crisis; furthermore, that volatility presents a very compelling opportunity to buy Canadian equities.

In a special market commentary, he said that the "wait-and-see" stance adopted by many investors who want to "wait out" the market correction, is actually the wrong move.

He said: "It appears that many investment professionals have recently reduced their equity exposure. We strongly believe that this is the wrong move at this time as was proven to be the case in the 2009 financial crisis. Many investors/fund managers did the same thing at that time and thus underperformed during the market recovery. They often refer to this as 'high grading the portfolio and although investors love to hear these kinds of comment from advisors and fund managers during uncertain times, they are often the wrong moves."

The global equity markets have been suffering since the market rout in August because of the European debt concerns and even the most veteran hedge fund managers were not spared. ......................

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