If you want to invest like Anthony Bolton now maybe the time to take notice. The former stellar Fidelity Special Situations investment manager has stated that now may the time to dip your toe into the market.
The FT reported that Anthony Bolton says he is prepared to buy equities, although that doesn’t necessarily mean he is.
For those thinking that some stocks have bottomed out Bolton said in the FT interview:
“Look through the stocks that have been hit hardest and ask — is it justified? In predicting the future in these conditions the private investor is in as strong or as weak a place as the professional investor.”
Timing of Anthony Bolton’s suggestion that now may be the time to buy stocks is specifically relevant to those who have not used their £20,000 Investment ISA allowance and have yet to invest in their 2020 Stocks and Shares ISA.
For more information on Anthony Bolton’s investing history, there is a great article on Stockopedia titled: Fund Management: The Facts They Don’t Want You to Know about what Bill Gross, John Paulson, Anthony Bolton and Bill Miller have all got in common.
Peter Hargreaves, the founder of Hargreaves Lansdown and chairman of Blue Whale Capital has also said that now is the time to look for cheap stocks. He recently said in an email to Blue Whale customers.
Investors have, for a while, considered the share price of businesses at the forefront of the new economy too expensive – they are a lot cheaper now. I challenge the wise old heads to remember the past opportunities but take into account that the world economy bears no resemblance to 1974.
Whatever the experts, say about buying stocks now, remember that the stock market is facing unprecedented pressure and uncertainly. So, investing now is for the brave. Picking individual stocks can be a minefield if you are inexperienced and in some cases, if you think the overall market is going to rebound an index tracking ETF may be a good option.
Alternatively, if you think the market is going to continue to fall, take a look at invese/short ETFs. These are like stocks listed on exchanges that go up as the market goes down. They can be used for either speculation or hedging a long-only equity portfolio.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.