Wealth Manager - the site for professional investment managers

WM - Wealth Manager
Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Eurovision Song/Investment Contest 2019

Four people in the industry give us insight into their Eurovision winners and which areas of Europe are their investment winners and losers.

It’s that time of year again! Taking place this weekend, the Eurovision Song Contest is the event that can simultaneously unite and divide nations.

After gracing our screens over the past 63 years, you might believe that nobody could beat the six-time success of Sweden, who gave us ABBA, IKEA and their famous meatballs. However, if the tantalising sounds of Lulu and Cliff Richard competing for the UK did not restore your faith, we have always got our neighbour and seven-time winner Ireland to give it a good shot.

Chris Mayo of Wellian Investment Solutions, James Godrich of JM Finn, Mohsin Bukhari of Carrington Investments and Donald Maxwell Scott of Rowan Dartington tell us who they are backing, which areas of Europe are looking promising right now and which sector should be booed off stage (figuratively speaking).

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Share this story

It’s that time of year again! Taking place this weekend, the Eurovision Song Contest is the event that can simultaneously unite and divide nations.

After gracing our screens over the past 63 years, you might believe that nobody could beat the six-time success of Sweden, who gave us ABBA, IKEA and their famous meatballs. However, if the tantalising sounds of Lulu and Cliff Richard competing for the UK did not restore your faith, we have always got our neighbour and seven-time winner Ireland to give it a good shot.

Chris Mayo of Wellian Investment Solutions, James Godrich of JM Finn, Mohsin Bukhari of Carrington Investments and Donald Maxwell Scott of Rowan Dartington tell us who they are backing, which areas of Europe are looking promising right now and which sector should be booed off stage (figuratively speaking).

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Chris Mayo

Investment director, Wellian Investment Solutions

What country is your pick to win the Eurovision Song Contest this year?

With the UK likely getting another ‘nil points’ this year, I’m going to pick the Netherlands as this year’s Eurovision winner.

On the investment front, what areas of Europe are looking promising right now?

As an asset class, European equities on the whole are currently trading on attractive valuations when compared to their long-term average, particularly in sectors such as financials, healthcare and consumer discretionary. The EU still offers a diverse range of companies, with many of these being well placed to grow their dividends over the long term, irrespective of the economic environment.

Which areas of Europe should be booed off stage?

The outlook for Europe is likely to be seeing a tougher macro environment with notable slowdowns, particularly in Italy. The ongoing political issues there continue to weigh on sentiment towards continental European equities.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Mohsin Bukhari

Head of investments, Carrington Investments

What country is your pick to win the Eurovision Song Contest this year?

I’m going to be a contrarian and go with the UK. Despite its abysmal record, surely this is its year!?

On the investment front, what areas of Europe are looking promising right now?

Europe has been going through an incredibly tough time, with slowing growth and knock-on effects from the trade dispute between the US and China. We may yet have a trade dispute between the US and Europe with regard to the auto industry.

This has led to European financials being severely hit to a point where they were pricing in a high probability of an imminent recession. We do not believe a recession is imminent and so feel that this sector has the potential to deliver the most upside on a 12-month view.

Which areas of Europe should be booed off stage?

Keeping my equity hat on and following my earlier comments, the European auto sector looks poised to remain in the crosshairs. A lot of negativity has been priced in, but I cannot yet see a catalyst for it to recover.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

James Godrich

Research Analyst, JM Finn

What country is your pick to win the Eurovision Song Contest this year?

I’m sure I won’t be the only one to tip Moldova, with their rich Eurovision heritage – who can forget the saxophonist in the 2017 SunStroke Project? Anna Odobescu has been looking good in the qualification rounds and it would be a brave person to bet against her being there or thereabouts on the big day.

On the investment front, what areas of Europe are looking promising right now?

Without trying to dodge the question, we see the greatest opportunities across Europe from bottom-up stock-picking. That being said, Spain have been one of the better performing economies and, should the banking sector avoid the risk from emerging market collapse, this trend should continue.

Which areas of Europe should be booed off stage?

While there are a couple of obvious candidates, one that sometimes sneaks under the radar is the imprudent Portuguese. The Stability and Growth Pact dictates that EU member states should have a debt to GDP ratio below 60%. While Italy is the worst offender at c.130%, Portugal is not far behind at c.125%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Donald Maxwell Scott

Technical investment manager, Rowan Dartington

What country is your pick to win the Eurovision Song Contest this year?

‘Nil points’ is a position the UK finds itself in every year at Eurovision – no votes and no hope. ABBA sang it best with their hit Waterloo in Eurovision in 1974: ‘I feel like I win when I lose’. This resonates because we believe there is still plenty of opportunity despite the political shambles we currently find ourselves in.

On the investment front, what areas of Europe are looking promising right now?

Despite Brexit uncertainty, we believe the UK is an attractive market, certainly within Europe.

Despite the political gyrations in the UK, there has been a slew of positive economic data – low inflation, low unemployment and reasonable GDP. We believe that regardless of the outcome of Brexit, UK stock markets will outperform their peers. 

Which areas of Europe should be booed off stage?

Italy is going through a turbulent time and Germany only narrowly avoided a technical recession.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Share this story

dot
dot

Top stories

Read More
dot