Performance update on ’bounce back basket’
Head of Equity Strategy
Summary: The 'bounce back basket' is down 14% since March 9 but we the latest policy moves it may soon be time for investors to increase exposure to high quality and beaten down stocks.
The ‘bounce back basket’ was introduced on March 9 as the sharp selloffs in equities made us come up with a list of 20 high quality equities in the US and Europe that investors should look if the market continued to fall. The stocks in the list are meant as inspiration and not recommendations to buy. Investors should do their own analysis.
As of yesterday’s close the ‘bounce back basket’ was down 14% on average in local currency with ConocoPhillips (COP:xnys) and Align Technology (ALGN:xnas) being down the most. With the policy moves in the last 24 hours from the Fed starting a Money Market Funds Liquidity Facility, ECB launching a €750bn quantitative easing programme in bonds and RBA announcing effectively yield curve control on 3-year government bonds there is definitely scope for some risk-on sentiment.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.