Lyon: Prepare for a Market Correction

Gold-rated fund manager Sebastian Lyon of Troy Trojan and Personal Assets Trust is selling out of equities and into gold and gilts in preparation for a stock market correction

Emma Wall 23 February, 2015 | 10:00AM
Facebook Twitter LinkedIn

Stock markets look buoyant today – boosted by positive news from across the Channel. As Germany and Greece put their differences aside, many market makers are prediciting a new all-time-high for the FTSE 100. But veteran fund manager Sebastian Lyon of Troy Asset Management is warning investors not to be too hasty.

Lyon, who runs the Gold-rated Personal Assets Trust (PNL), is selling out of equities, prepping his portfolio for a market correction. The fund manager says that current market conditions remind him very much of pre-tech bubble Britain, just before the stock market crashed.

“Prior to the dotcom bubble bursting equities enjoyed an 18-year bull market, making investors 10 times their money. But when we launched Troy in 2000, I looked around and thought 'that is not sustainable'. The equity market was very high and I believed a portfolio fully invested in equities would not be able to deliver long term returns – and I was right. I feel the same about global stock markets right now,” he said.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Berkshire Hathaway Inc Class A427,832.75 USD0.00Rating
Berkshire Hathaway Inc Class B283.09 USD0.00Rating
GlaxoSmithKline PLC1,510.80 GBP0.00Rating
Imperial Oil Ltd41.79 CAD0.00
Personal Assets Ord49,405.99 GBP-1.09Rating
Sage Group (The) PLC773.60 GBP0.00Rating
Trojan O Acc394.81 GBP0.11Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar