Check out this FT interview with PM Neil Woodford whose fund has been struggling this year.
“Investors have forgotten about risk and this is playing out in inflated asset prices and inflated valuations. Whether it’s bitcoin going through $10,000, European junk bonds yielding less than US Treasuries, historic low levels of volatility or triple-leveraged exchange traded funds attracting gigantic inflows — there are so many lights flashing red that I am losing count.”
Woodford focuses on domestic businesses as well as young technology companies.
He said this was why he was staying out of a host of expensive “zeitgeist” stocks, instead buying UK-focused housebuilders, retailers and banks whose share prices are discounting “economic Armageddon for the UK economy” following the Brexit vote.
Yet, at the same time, he insists there are “profoundly undervalued businesses”, ranging from domestic blue-chips to unlisted knowledge-intensive growth companies seeking early-stage capital which, given time and patience, will deliver a better performance for his investors.