“I started in the investment profession when there had been a big sell off,” says Colin McLean, FSIP, CEO of SVM Asset Management. “I think with the boldness of youth I found it a lot easier to look for value amongst small and mid-cap stocks.
“What are sometimes traumatic events for the financial sector, is actually a good time for young professionals to come into the industry.”
McLean also predicts a sharp rebound in the markets, but this depends on the extent to which China returns to production.
Although he is forecasting a U-shaped recession, he still thinks there is a reasonable amount of functioning currently going on in the markets. “It does look at the moment, like the markets will not be suspended, that has been a concern,” he says. “UK short-selling has also not been stopped.”
But while the economy might recover, McLean points out companies will be slow to commence share buyback schemes and will also cut dividends.
In the long run, he sees opportunities in the stock market and believes going forward quality growth stocks will be in favour, as interest rates remain low.
This article was recorded on Tuesday 24th March over Zoom.