Investment Strategies

Rothschild Wealth Management Likes Tech, Uses Hedges As Risks Swirl

Tom Burroughes, Group Editor, London, 5 September 2013


The global economy appears to be warming up, with
better-than-expected China
data offering some cheer, while volatile financial markets have jolted some
complacent investors and knocked prices to more realistic valuations, Rothschild
Wealth Management said in a monthly note.

Conditions remain uncertain, the firm said, citing risks
such as Germany’s federal
elections due on 22 September, the tapering, or ending, of the US Federal
Reserve’s hefty monetary stimulus and the violence in Syria. Rothschild added that the
issue of China’s
credit bubble is “perhaps the greatest threat to global growth and we believe
it could burst at some point. We will continue to protect portfolios during
this uncertain period”, the firm, in a note by Dirk Wiedmann, head of
investments, said.

Although Rothschild Wealth Management said its broad
investment stance remained steady over the past month, it highlighted three
important areas:

-- There is an investment case for holding large technology
companies. Additionally, activist investors have a number of targets in this
sector, which could add further value;

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