Tony Cousins: Valuations in international equities

Tony Cousins

Chief Executive & Chief Investment Officer, Pyrford International

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Matt Ackermannn: Where are markets heading in 2020 and how will Pyrford lead the way? I’m joined today by Tony Cousins from Pyrford to discuss. Tony, welcome.

Tony Cousins: Good to be here.

Matt Ackermann: Tony, you’re someone who always has your finger on the pulse, what are some of the big trends that advisors are preparing for as we’re about to head into 2020?

Tony Cousins: I think advisors are getting a little bit disillusioned with value – value hasn’t delivered. We are committed value managers. But the key here is to avoid value traps. There are certain notable value traps in European financials in particular that have sucked in value managers we’ve managed to avoid that. And that’s a policy we’re going to continue to follow.

Matt Ackermann: That’s amazing. There are a lot of value traps out there. What can advisors do to make sure to sidestep those value traps and keep their clients on the straight and narrow?

Tony Cousins: Well, I think you’ve got to buy managers who have a very, very strong process. They know why it works. They know how it works. And it’s got to be something that’s delivered over a long period of time. We happen to think that how much you have to pay for an asset still is important and history has proven that that’s always been the case.

Matt Ackermann: That’s absolutely right. You know 2020 looks here in the States to be a year that could be tumultuous. You know when you think and you look ahead and you take out your crystal ball, if you will. What are some of the things that are also out there that people should be aware of so that they can stay a step ahead?

Tony Cousins: Well, I guess we were at the end of 10 years of phenomenal money printing. This has led to a lot of distortions in the world. It’s led to massive inflation of financial assets. It’s led to huge buildup of debt in various pinch points around the world. And you have to avoid those you know, we follow a very active approach. And it’s just as important. What you don’t own is what you do own.

Matt Ackermann: That’s the key. And that’s why I want people to remember. It’s just as important what you don’t own, as what you do own. Great takeaway. Tony, thank you so much for joining us. Those are amazing insights.

Tony Cousins: Thank you.

Matt Ackermann: For investmentNews, I’m Matt Ackermann.

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