R&M's Sergeant: The value cycle is 'bottoming out'

Positioned for an end to multi-generational bull market in government bonds

River and Mercantile Asset Management's equities CIO Hugh Sergeant believes the UK value cycle is at a tipping point, with stocks trading at multi-generational lows now "bottoming out".

Sergeant (pictured), who is manager of the £180m AUM River and Mercantile UK Equity Long Term Recovery fund, said signs are now building that earnings in sectors like materials, financials and energy are starting to accelerate. River & Mercantile to launch and seed Global Macro strategy this year "The stocks seeing the strongest earnings upgrades are trading at a big valuation discount, close to the relative low points reached over the last 30 years," he said. "All you need is a merest hint of the cost of money moving up and the reflation and value trade takes off again as it did i...