Blue-chip shares are currently the key investment for those looking to avoid the impact of the credit crunch, one expert has claimed.
According to Ralph Brook-Fox, investment manager for Resolution Asset Management, the safest investments will be those that focus on companies with high overseas earnings and potential for growth.
He said: "We believe we need to be blue-chip and global at the moment in terms of where we are seeking ideas for the portfolio, even if it can appear a little boring. We will only consider domestic midcap stocks when there is evidence that UK consumers are taking the challenging economic outlook on board."
Mr Brook-Fox explained that once this happens and consumer spending starts to fall, then domestic FTSE Mid 250 stocks will offer some good investment opportunities.
Yesterday, Mike Hanbury-Williams, manager of investment firm F&C, claimed that China-based investments have the potential for long-term growth.
He said that, despite short-term worries over inflation, investments in the country should prosper.




