Shah: falling equity markets ready to be exploited

The current correction in equity markets should present opportunities for investors, according to Sanjeev Shah.

Speaking at the 2010 Fidelity FundsNetwork Investment Forum, Shah explained how he had judged the UK market to be overvalued earlier this year, so bought put options that have returned a profit thanks to recent market falls. Despite the correction, Shah argues the market still represents a positive environment for equity investment, although the focus  should be on company-specific opportunities. The cyclical valuation gap has closed in and valuations are now more appealing in high quality, stable stocks, he says. Bottom-up stock-picking should come to the fore in the current envir...