Growth More Fragile Than People Think: Diebel

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March 11 (Bloomberg) -- Charles Diebel of Lloyds Bank Commercial Banking examines global growth expectations, equity market valuations and offers his investment strategy on Bloomberg Television’s “On The Move.”

You are about growth in general.

Where do you see the most might be made?

The key aspect is the investment world coming into this year with bullish expectations and how this year is a different year from the years that we have had because of the weather affects and events in the ukraine and thailand.

There have been a suppressing effect on growth and this is hard to distinguish at this point in time.

Whether there will be a rebound when the weather improves or whether in fact we are dealing with a continuation of the previous years, where growth is more fragile.

That is what i am in.

It is an inventory buildup that you had in the second half of last year and that is partially responsible for the weekend data.

It is not of the world is going into a big recession or cataclysm.

We are in a slow growth story.

The valuation and the stock market has not fallen at all.

The big correction is being recuperated.

You are looking at longer-term measures and we are not at the year 2000 feet.

We are at second order peaks bands the equity market is looking from a longer tour -- longer-term point of view and is richly priced.

You can sign other asset classes.

Is there a correction question mark do you still want a place where valuations are cheaper?

Exactly.

That is right.

You need to have an asset allocation process going on and the u.s. has better deals in europe as long as you believe that europe will get through the structural reform process.

I do believe that but i think it will take a long time and i was surprised last week.

I think they need to give the economy a push and i think something like asset purchases or some form of non-sterilization gives it a bit of a left.

We will talk to china in a few minutes.

What is your favorite pick?

What is your biggest winning of a medium risk portfolio?

I would have government bonds and more distressed debt.

With the yield curves as steep as they are, there is a lot of carrier rundown and i think that is the best way to make money in a world where we are not certain about the prospects.

Do have to pick?

They are sold off in one go and structural reforms look weak.

Yes.

That is right.

It is on a country by country basis and two years ago, it was a simple asset class.

That is not the case anymore and we need to say if the valuations and thailand are correct based on the political risk.

Will there be a resolution to that?

What is your favorite country?

I like thailand.

I think others have been hit worse.

Potentially, brazil, when they get their interest rates under control.

Stay with us and we will talk about china.

Here is what else is coming up.

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Keep it here.

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

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