By Hanny Wan
Feb. 12 (Bloomberg) -- Edmond de Rothschild Asset Management has been buying shares including Microsoft Corp., Bayerische Motoren Werke AG, and Chinese health-care stocks, betting that the worst of the stock market slump is over.
The potential for further stock market declines is limited because of lower costs and profit expectations, said Bruno Vanier, chief investment officer of global equities at Paris-based Edmond de Rothschild AM, which manages 8.1 billion euros ($10.4 billion). While the global economy is going to be “really bad” this year, he said he expects the situation to improve going into the fourth quarter of this year and the first quarter of 2010.
“It’s very rare to see two very bad years; 2008 was a nightmare,” Vanier said in an interview in Hong Kong yesterday. “The bad stock market performance last year was a reflection of the bad news today. So we should not be too concerned about the very bad news that we have now.”
The MSCI World Index’s 42 percent slump last year was the worst since at least 1970 as the collapse of the U.S. housing market pulled the U.S., Europe and Japan into their first simultaneous recessions since World War II.
To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net
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