Large caps currently offering once-in-a-decade opportunity

Large caps are offering once-in-a-decade opportunity on a valuation-and-yield basis, according to Mark Barnett, manager of the Invesco Perpetual Strategic Income fund.

Just under 60% of his fund is invested in the FTSE 100 as Barnett is bullish on this area of the market. “The economy has stabilised but headwinds remain and the recovery is likely to be sub-trend. “However, there are opportunities in the equity market, particularly in the big caps which have reliable growth and strong dividends. I have every reason to believe they will make gains in general. “They have proven to grow earnings even in the middle of a deep recession and will continue to do so. The valuations are cheap enough to reflect the wider economic concerns,” said Barnett. ...