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Market's in a ‘Dramatic’ V-Shaped Recovery: Portfolio Manager

Wednesday, 29 Jul 2009 | 12:26 PM ET

We are in a dramatic V-shaped recovery, said Michael Browne, portfolio manager of Sofaer Global.

'Dramatic' V-Shaped Recovery: Portfolio Manager
"It's a dramatic V-shaped recovery," Michael Browne from Sofaer Global Research said Wednesday. He told CNBC this is the first recession where we've had the technological facilities to take down inventory in manufacturing quickly so that we can act aggressively.

“In manufacturing terms, this is the first time we’ve had this instance to be able to take down the inventory as quickly, aggressively and speedily as people did,” Browne told CNBC.

“We didn’t have that ability to react in 1991 to 1993 in the way we can react today.”

More Market Optimism:

Browne said based on world demand levels, he expects to see an increase in production.

“[For example] if I hold demand constant...overall, world demand is up a little bit and I cut production by 40 percent, which is what people are doing,” he said. “Then on the other side of that, I’ve got to raise production 35 percent—mathematically more like 45 percent—so of course it’s a V-shaped recovery.”

Disclosure:

No immediate information was available for Browne or his firm.

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