Displaying items by tag: defensive sectors

Tuesday, 22 October 2019 09:19

Stop Playing Defense in Equities

(New York)

Investors have been playing defense in stocks for months. Everyone has been very spooked by economic data and the trade war, which has caused a rotation into defensive sectors. However, a top manager at Fidelity, Denise Chisholm, is saying the opposite: it is time to play offense. Her core argument is that real interest rates in the US are negative--which happened after the Crisis and also in the 1970s and 1980s—which is highly bullish for the stock market. Further, the ECB and Fed are cutting at the same time, a quite rare occurrence, and one that has always led to an equity market rally.


FINSUM: This is an interesting contrarian argument. We particularly like the ECB + Fed narrative.

Published in Eq: Value

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