European Capital Partners - Stay defensive Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Stay defensive

Jun 16, 2022

As markets took a positive spin on the 75 bps rate hike by the Fed, we should not fool ourselves in believing that the economic and market conditions have fundamentally changed overnight and equity investors are out of the woods. One way to look at the current situation is to compare the current bear market to the historic ones experienced since WWII in  the US. We draw 2 conclusions: firstly, the current fall in the stock market has been shorter than the ones experienced in most of the previous bear markets and, secondly, the recoveries tend to take time. Let’s not get to hooked in on the one noticeable exception, the pandemic. We remain prudent and defensive before putting new money to work.

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