Mark Konyn, the Hong Kong-based chief executive officer of RCM Asia Pacific Ltd., which helps oversee about $150 billion globally, commented on the outlook for equities amid concern the global recovery is faltering.
He spoke in a Bloomberg Television interview today. The MSCI Asia Pacific Index dropped 3.8 percent as of 12 p.m. in Hong Kong, taking its drop from this year’s high reached on May 2 to 11 percent.
“We’ve probably seen the highest of this year. We can say that with reasonable amount of certainty. In Wall Street and Europe as well, investors are quite nervous now about developments in Europe and whether or not we have real leadership in tackling the sovereign debt issue and the cascading effect on growth.”
“If you look at economies and how they’re positioned, they’re certainly posturing for a double dip. Now it’s a question of whether or not there will be policy response to revert that. That’s the worry. If it continues to move in this direction, we’ll start to see the falls reach those levels seen back then.”
On his investment strategy:
“We have a balanced portfolio at the moment, where we’ve got an evenly balanced between cyclicals and growth, so we’re not overly exposed. We’re underweight energy stocks, underweight certain industrial names and we’re positioned for growth in consumption.”
“We still see growth in consumption, for example in various areas in technology, particularly in the Internet space.”