Troy: It is Dangerous to Buy Equities Now

Troy Trojan fund manager Sebastian Lyon is famed for his cautious approach - but even by his standards the forecast for stock markets looks bleak

Emma Wall 31 July, 2017 | 4:40PM

“I am even more defensive than when we last met,” says Sebastian Lyon, founder of Troy Asset Management and manager of the multi-asset Troy Trojan fund.

“The portfolio has less than 40% in equities, we just cannot find value in the market. Any purchases are made on a rifle shot, not scattergun, basis. Any investor buying equities now is taking a big risk – the more the market climbs the more vulnerable you are to a correction, and it could be as much as 50%.”

Lyon is not famed for his bullish attitude towards stock markets. He invests for capital preservation, aiming to beat the stock market over the long term – but this is done mainly though losing less money in the downturns.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Personal Assets Ord42,508.24 GBP-1.37
Troy Trojan I Acc313.59 GBP-0.80

About Author

Emma Wall  is former Senior International Editor for Morningstar

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