Schroders' Buxton says more pain to come but US will recover within year

Schroders head of UK equities Richard Buxton said we are only at the beginning of the econom...

Schroders head of UK equities Richard Buxton said we are only at the beginning of the economic pain, expecting more de-leveraging and recapitalisation to take place. He is predicting a volatile, range-bound and rotational few months ahead, saying banks, cyclicals, defensives and energy stocks will see swinging sentiment given the levels of recapitalisation. Buxton said he is seeing several positions that need to be unwound and profit downgrades to be worked through. He said: “It is also worth remembering, however, that while a raft of downgrades never creates an enjoyable situa...