By Jeremy Gaunt, European Investment Correspondent
LUXEMBOURG (Reuters) - Fortis Investments is telling its wealthier clients that now is the time to buy into some of the assets that have taken the worst beating since the subprime mortgage crisis hit financial markets last year.
These include oversold stocks and some of the "toxic", riskier bonds that have been dumped because of the liquidity squeeze that has accompanied the crisis.
"For the long-term investor this is the time to be a contrarian," Peter Branner, Fortis's chief investment officer for multi-management, told the Reuters Funds Summit in Luxembourg.
"I think it's starting to be interesting to look at both equities but also at some of the so-called 'toxic' stuff such as high-yield bonds."
Branner, whose team advises on third-party funds and puts together funds that bring in managers from those different companies, said equities were now attractive given their earnings expectations and the price to which they have fallen.
"The valuations are a lot cheaper than last year, everything else being equal you can get them much cheaper," he said.
As for bonds, he noted that there were a lot of high yield bonds being force-sold by banks and that these could be seen as a good deal for people who dived into much more expensive debt before the crisis.
"In credit, if you can get 400 basis points above risk-free rates when before you were prepared to buy it at 80 basis points, then there are good opportunities. When others are being forced out then it's a good time to buy, he said. Continued...
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