“What we are seeing is the market move towards a more traditional recession. Quality typically outperforms in down markets, and the fears around interest rates and inflation have rolled over into growth worries.”
That is the view of ASI Global Smaller Companies manager Kirsty Desson, who says the market is just starting to refocus around sustainable growth and quality in this challenging environment. Make no mistake about it, the pressures have been intense and varied - with multiple macro drivers at work in tandem with geopolitical events. Inflationary pressure is persisting, while a sharp rotation into value in January, followed by the outbreak of war in late-February, caught investors off guard. Darius McDermott: BlackRock European Dynamic is 'genuinely flexible' Desson says while in...
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