Buxton predicts single-digit earnings growth for 2015

FTSE 100 earnings may grow by as little as mid-single digits next year, but inexpensive P/E ratios mean buying on the dips still makes sense, according to Old Mutual Global Investors' Richard Buxton.

The manager of the £1.5bn OMGI UK Alpha fund said the pullback in October, sparked by a variety of macroeconomic worries, did not unduly concern him. The impact of weak Chinese data, Russian sanctions on Germany and the falling oil price have all contributed to a growth scare, he said. But Buxton remains positive on the prospects for UK equities. In his monthly webcast, he told investors: "We think earnings will grow in 2015, albeit only by high or mid-single digit numbers. [However] we are probably only at a little over 13x next year's earnings. This provides me with the comfort that...