US - Individual stockpicking is the only way for pension schemes to get value out of US equity markets, Merrill Lynch Investment Managers claims.
The fund manager said it was “much better” for investors to use an active manager which could pick individual stocks given the low growth environment and the difficulty in predicting how sectors will perform.
MLIM added that while there was excess capacity in several industries, there were good prospects for growth and head of US equity team Richard Boom added that US bonds were also looking good.
He said: “Investors should not forget that US interest rates are at a 40-year low, and that bonds over the past three years have generated their best returns for 60 years.”
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