Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Chief Investment Strategist
Summary: In this equity update we provide investors with inspiration for a 'bounce back basket' in equities. We are looking for high quality companies with low debt levels that have fallen a lot since 17 January 2020.
Equity markets are not one-ways streets although it has felt so since the coronavirus outbreak. There will be bounce backs and at one point the policy response will be enough to hammer in a market low. When the time comes investors will have to be ready. Our ‘bounce back basket’ is based on the following argument. Look for equities with high quality traits and which have fallen a lot since 17 January 2020 when China officially acknowledged COVID-19. The ‘bounce back basket’ contains 20 stocks with these characteristics across different sectors.