Aberdeen sees opportunity in 'panic share selling'

Recent panic selling heralds a more constructive backdrop for global equities investors looking for opportunities over the medium to longer term, according to Aberdeen Asset Management.

Head of global equities Stephen Docherty said the manager’s global equities team is continuing to look to take advantage of price weakness on a selective basis.

“Despite slowing global economic activity and the likelihood of recession in developed markets such as the UK and US, it’s not all doom and gloom for investors, especially for those with a long-term approach”.

Docherty said, the “instinctively contrarian” global equities team will look at building positions in high quality companies, where earnings will be under pressure over the next year or two.

“Having been cautious about equity markets for some time, we view the ongoing downward correction as quite healthy.

“We also believe that as global economic growth slows, corporate profits expectations will continue to be revised down, and that this will result in some attractive buying opportunities for investors with longer-term horizons.

“For our part, we will look to add selectively to our holdings, or to introduce new companies where we find both quality and value, with a view to building up positions over the next 12 to 18 months, ” he said.