Buxton bullish on 'mid-cycle' rally; uneasy over sterling 'safety valve'

Added 21st April 2017

Old Mutual Global Investors CEO Richard Buxton is less worried about politics in Europe, the US or the UK than he is about sterling being the UK's only safety valve post-monetary policy.

Buxton bullish on 'mid-cycle' rally; uneasy over sterling 'safety valve'

Although Bloomberg polls put Emmanuel Macron and Marine Le Pen ahead of the pack in the lead-up to France’s first round of elections this Sunday, Buxton confidently asserted: “I’m not worried about any of the European elections this year.”

“The French electoral system is designed to ensure the extremes can’t win it,” he said, adding that in Germany “there will be a coalition in September but it’s not going to produce any radical change in policy.”

“The real surprise this year is Europe will actually grow and is beginning to demonstrate that the consumer in the core countries is actually in a pretty good space.”

Generally speaking, he feels “without a shadow of a doubt things are getting better” for the economy.

Markets continue to rise not because of central bank activity but because they are entering a gradual period of “normalisation,” he asserted.

Although the current UK equity bull market has persisted for over eight years, Buxton cites academic theory that post-financial crisis, the recovery period will endure longer than a normal economic cycle.

“By that yardstick, we’re just entering the mid-cycle which is when, funny enough, things start getting better and central banks start raising rates as the Fed is gently beginning to do."

Even concerns over president Trump’s protectionist stance are somewhat overblown, he thinks.

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Kristen McGachey

Senior Reporter

Kristen joined Last Word Media and the world of financial journalism in April 2016, leaving behind a career in a legal publishing firm as a senior researcher turned assistant editor.

This native Angelino initially moved to the UK in 2008 to complete her undergraduate studies at the University of Nottingham. She subsequently obtained a Masters degree in Philosophy with Literature from the University of Warwick.



Investment Strategy




PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel, Edinburgh

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Sofitel St James, London  

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall