5 February 2008
Markets are facing a winter and spring of
discontent, but the financial outlook will begin to improve from
summer, says Mike Lenhoff, chief strategist at Brewin Dolphin who
yesterday addressed the UK Shareholders’ Association’s
North West region.
Speaking at two events in Manchester, a UKSA
seminar at Brewin Dolphin’s offices then later a meeting of
the company’s clients at the Hilton Hotel, Mr Lenhoff told
the combined audience of 250: “the message I want to leave
behind is that in the next few months we are going to be faced with
a very difficult environment, but I’m hopeful that, lower
interest rates will stimulate the expectation that better times lie
ahead.”
This is the sixth year that Mr Lenhoff, one of the
most consistent predictors of the FTSE 100’s year-end levels,
has addressed Manchester investors. This year, he argued that the
actions of the American central bank could have ramifications which
would directly affect investors in the North West.
He said: “The contrast with this time last
year is that in 2007 there was no indication that we would be
heading into the sort of problems we are now having to confront. At
that stage, the outlook for company profits was quite rosy,
earnings consensus was on the upside, you still had significant
corporate activity and widespread involvement of private equity.
Now the situation seems to have reversed. However, I feel that the
American central bank has recognised the risks involved in this
financial crisis and is bringing interest rates down as swiftly as
it can. The Bank of England will follow, which should generate a
pick-up in corporate profitability in time. This combination of
factors, together with favourable valuations in equity markets
should help to turn a bleak performance in the equity markets into
something more promising.”
Also speaking at the event was Robert Race,
Divisional Director at Brewin Dolphin’s Manchester office,
who talked about Brewin Dolphin’s current asset allocation
and sector weightings for clients’ portfolios.
ENDS
The values of investments can fall and you may get
back less than you invested. No product or service is suitable in
all circumstances and if you have any doubts then you should
consult a professional advisor.
For more information, contact Damian Kerr on 0845
213 3026, 07720 783242 or damian.kerr@brewin.co.uk
Notes to editors
Brewin Dolphin Limited ("BD") is the principal
operating company of Brewin Dolphin Holdings PLC which is listed on
the London Stock Exchange. BD is authorised and regulated by the
Financial Services Authority and is a member of the London Stock
Exchange.
BD is the largest independent private client
investment manager in the UK. The Group manages £21.6 billion
of funds for over 120,000 clients, and of this £10.7 billion
is on a discretionary basis. BD has 39 offices and is corporate
adviser to 131 corporate and 100 institutional clients. Brewin
Dolphin Investment Banking was voted AIM Broker of the Year
2007.1
The Group provides complete investment management
for private investors, charities and pension funds and trades
as:
Brewin Dolphin in England, Wales
and the Channel Islands
Bell Lawrie in Scotland and Northern Ireland
Hill Osborne in the East Midlands
Wise Speke in the North of England
Stocktrade is the BD Execution-Only division. www.stocktrade.co.uk
Please see Media Centre section on www.brewindolphin.co.uk for details and photos of
all commentators and analysts throughout the BD Group.
1 Brewin Dolphin Investment Banking was voted
Broker of the Year 2007 at the Investors Chronicle AIM Investment
Awards, in association with the FT