"We’re now in a sweet spot for growth, as indicators are improving. Three weeks ago I was underweight equities and commodities, now I’m overweight. Conversely, we were overweight bonds and cash, now we’re underweight."
Performance of manager and fund vs sector over 5-yrs
Source: FE Analytics
Greetham runs Fidelity’s range of multi-asset funds, which tend to outperform their peers. The fund with the longest track record, Fidelity Multi Asset Strategic, has returned 28.3 per cent over the past five years, while the average fund in the Mixed Investment 20%-60% Shares sector has returned 9.9 per cent.
<The manager (pictured right) says the current environment is favourable for equity investors.
"The growth indicators we look out for on our investment clock are less negative than they have been. Different asset classes do well at different times in the cycle, but these turning points come without warning and aren’t obvious at the time," he commented.
"Lead growth indicators now are less negative and inflation is falling. That’s the best time of the economic cycle for stocks."
He added: "Looking back, March 2009 would have been a good time to move into equities, but it took six months for the consensus to become that things were getting better."
Performance of indices over 3-yrs
Source: FE Analytics
Our data shows investors who ploughed into the UK market three years ago would now on average be up on their investments by more than 80 per cent.
Greetham is underweight European equities, despite feeling hopeful about a short-term recovery in the region. Instead he favours US stocks, which he says are undervalued.
"Weakness in the European periphery led to a fear of losses on sovereign debt, which in turn led to the credit crunch," he explained.
"Policy makers have been deflating the south of Europe to solve the crisis, but I think inflating northern Europe will be a better alternative. Aggressive intervention must be unlimited and unconditional. We need to grow the core of Europe, not deflate the periphery. It means things are less imbalanced."
"Greece will leave the euro or default, but not in the next six months."
"We’re positive on US equities. We’re seeing a difference in direction between Europe and the US in unemployment. US unemployment is falling, while Europe’s is increasing," he finished.