Not worried about seasonality risk, focus on stock picking – Linear Investments

We are through August without any major risk-off event; however, pundits are back on wires warning that September has been a rough month for markets, especially for S&P500.

However, Tim Harrison, Head of Wealth Management, does not worry much about the seasonality risk and focuses on picking stocks that offer value. On today’s US open show, Harrison is joined by Tip TV’s Zak Mir. Barclay group and PLC are Harrison’s stock picks this week.

Key points

Barclay group – Starting to pick long positions up in the company, fundamentally it’s a great business. Short unwind likely to help share prices as well. Slight improvements in the property sector now hence a decent opportunity to go long.

GKN - We continue to build position in GKN. People do not understand what they do, but the business is booming into China and into emerging economies, lot of business is exports so they are benefiting from weak Sterling. Breaking into China is benefiting. Plus it’s British blue chip money. Their balance sheet is rock solid.