D&G Asset Management

Tuesday, November 10, 2009 by Douglas And Gordon

D&G Asset Management (syorke@dngim.com) undertakes research into the prime London markets ( PCL ) and advises Funds on property acquisitions in Prime London.

Recently D&GAM published its latest thoughts on the PCL market and looked ahead to what might be in store over the next two years . What the research showed was that PCL has a very low correlation to equities , the UK housing market and UK mortgage lending.

This further underlines that PCL can act as a wealth-protector at times of economic weakness. In previous cycles the combination of a weak sterling and low stock has resulted in sharp corrections to PCL values.

D&GAM thought that there would be a correction in 2009 and the conditions are still in place for a continuation of these recent rises through 2010-11 . We think PCL will rise by 20% between october 2009 and the end of 2011 .