Fed Taper Might Be Followed by More Easing: McLean

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Sept. 13 (Bloomberg) -- Colin William McLean, CEO and Founder of SVM Asset Management, discusses Federal Reserve tapering as it relates to the economic recovery in Europe and his subsequent investing strategy. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

We will come to your stock pacific thoughts later.

If we could start with your macro take on looking ahead to the fed and what we have seen.

The most recent bloomberg investor poll says that investors say it is no big deal with the fed tapering next week.

The key to the u.s. is that nominal gdp is quite sluggish.

Although there are signs of recovery which will continue, we are going to get more language in the fed.

The taper might be followed -- it looks like it is not all one way.

I am quite encouraged.

Do we just moved around session with when the feds hurts to taper into how long it takes to taper and when tapering ends?

Does that become the obsession?

I think there will be other issues that will start to concern investors.

I am pretty optimistic overall.

I think there is a lot of a return act into european stocks.

There is good value there.

There is a surprising turnaround in europe.

I think there is lots of good news in other regions to come.

The market will become a little bit less focused on the u.s. recovery.

We saw some slightly underwhelming data on the euro yesterday.

That doesn't shake your base case about recovery in the eurozone does it?

We are going to see some choppy figures.

Spain is improving productivity.

I think the overall figures for the eurozone -- in terms of consumer confidence, industrial confidence, that is picking up.

How do you buy into a euro economic recovery?

Many of the big names have done fairly well on the back of their exposure to emerging markets and that is really where their growth stories are.

How do you play on the eurozone itself?

I think a lot of the big names in europe, there is still something of it does current to the u.s.. the recovery potential is still a lot more than u.s. there are still quite a lot of mileage.

I would say some of the bigger manufacturing consumer stocks and germany in particular.

How surprised are you by the speed of the recovery in the u.k.? six months ago we were talking about the possibility of a triple recession.

That didn't transpire.

The double-dip was erased.

Now we are talking about what speed the u.k. recovery is coming through.

Has this surprise you?

I don't think so much the speed but what is encouraging is is it is rolling out more from the southeast.

We are getting house prices starting to move.

It is a broadening recovery.

Consumer confidence is picking up after the last few months.

Investors have been slow to catch on to some of the u.k. consumer stocks.

I think that is certainly catching the market by surprise.

When we heard from mark carney, he was making that point that a lot of the improvement in-house pricing was focused on the southeast and he was waiting to see signs of it picking up elsewhere.

You see this as a recovery that has a foothold in more than just the southeast?

There are signs of that.

We're seeing it in the reports that we see from companies that is his broadening out.

There is big political pressure and also pressure on mark carney.

I think there is going to be stimulus around the u.k. economy.

Macro shifts taking place in the developing market.

How is your exposure to emerging markets?

The msci down five and half percent when talk of tapering started.

Is this a time to buy more emerging markets stocks or take a step back?

It is still a time to take a step back.

A lot of investors bought emerging markets as an act of faith after 2008. they haven't been looking at the changing circumstances in markets like india and if there is further tapering on dollars, it is going to be tough for emerging markets.

We are going to see some money moving back.

Thank you,. we will be back.

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This text has been automatically generated. It may not be 100% accurate.


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