Current Markets Are Like ‘Hotel California’: Singh

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April 30 (Bloomberg) -- Manish Singh, Head of Investments at Crossbridge Capital, discusses the economic outlook for worldwide markets and his subsequent investing strategy. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

You have seen the s&p surge between 1840 and 1890. you are not seeing a real breakout on either side.

There is enough bank capacity and you will have the gdp number coming in this afternoon you don't expect the number to be very good because it is 21 which is impacted by weather.

Does that hold the market back?

Earnings in the u.s. are ahead.

10% to 12% higher than europe.

Maybe america is pacing ahead.

You saw the q4 gdp number.

The q1 number is probably going to be around 1.1%. if you look at the data, we are seeing a very positive momentum.

We will have the adp number which i think is more important.

Adp and pmi and the friday jobs report become very important.

Talk to me a little bit about and i -- about m&a in europe.

There is deal after deal.

We have got pharma deals, industrial deals.

Is this the beginning of a bigger cycle?

I think yes, the m&a cycle is catching up.

The pharma sector is focused as we have seen.

This stock has a very good run and you see a correction.

You are talking about pharma sector stocks which are coming into new age drugs.

People who suffered from leukemia a few years back had a survival rate of one third.

Now it is 90%. you are talking about new age drugs.

You will see a lot of these things happening.

As an investment manager, maybe you have some exposure to glaxo, whatever.

Do you begin to eat say to yourself, if i haven't got exposure in these other names, i should begin to add that into the portfolio?

We have investments in novartis.

A balance between biotech and old name for a companies.

That is how i manage portfolios.

M&a in europe is also going to catch up.

You are going to see not very strong gdp growth or a lack of growth that we have seen.

You will see companies merging together to increase their profitability, to hit their return on equity target.

There could be more deals in europe.

How do you position yourself?

Is it a shorter-term perspective?

Do i buy industries, do i begin to cherry pick industry groups where i think the value is?

When you pick stocks, you still pick good businesses.

You position yourself with the cycle.

Financials, tech, industrials, these are still the names i would like to hold.

Europe this year has not done very well.

The second half is where we are going to see some performance.

You had a lot of earnings this week.

We will have more next week.

We have the asset quality review and setting up targets to see the banks fail the target or come through the target.

There are various things happening in europe.

Those are all the generic issues that we are very well aware of.

How do i position myself for 2014 if qe comes in the later part of the year?

If there are rate cuts here in europe?

Where do i want to be exposed to take advantage of that?

Do i buy banks, do i buy cyclicals, do i buy retail?

Where am i going to get that value?

Financials is my big bet.

Even though they have not done very well, i would look at pharmaceuticals like novartis.

Not a huge amount of industrial names.

Energy didn't do very well last year.

We just had shell numbers this morning.

If i go back to u.s., you have all the energy stocks which have done extremely well.

Energy stocks are doing extremely well.

It is the rotation.

It is not like money leaving.

It is rotating from one sector to the other.

We're going to have to leave it there.

Great to get your opinion.

Manish singh, great to have you with us.

Coming up, top shop once again.

The latest collection hits stores today.

Caroline hyde gives us a sneak peak.

? once again, the british powerhouse of retail has teamed up with a british style icon, kate moss.

It is causing -- [no audio]

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