In one graph
Sep 27, 2023
In case you are just back from a late and long Summer break without access to financial news ( lucky you ), here is the big picture of what happened over the last weeks. Interest rates are up, the USD continues to strengthen and stock markets have been weakening since July. Nasdaq is down more than 10% since its July high and is entering correction territory ( while being still up 25% y-t-d ). At ECP, we have been shying away from taking too much duration risk, which is playing off for our clients who are invested in shorter term bonds. At the same time, within equities we focus our investments on quality companies with undervalued earning power, avoiding the companies whose high valuations appear too sensitive to interest rates.