Asian-based asset management firm, Cornerstone Worldwide believe that many quality stocks are being oversold as investors rush to liquidate holdings to cover anticipated customer withdrawals or margin calls.
Indiscriminate offloading of stocks in some of the most robust blue-chip organizations has apparently prompted Cornerstone Worldwide to begin acquisition of stock at prices significantly lower than recent values.
Although analysts’ expectations – including those at Cornerstone Worldwide – are that there may yet be additional falls to come, sources close to the firm believe that fundamentals for many of the stocks remain solid over the medium-to-long term and, thus, possess scope for impressive return on investment.
One of the Cornerstone Worldwide sources suggested that the current climate was conducive to value investing in key sectors but advised investors to eschew irresponsible short-term speculation for longer term prudence.
