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Podcast: All into Account
Episode: Equity Strategy: Will the more Defensive sector performance, seen so far in Q2, have legs?
Description: Speaker: Mislav Matejka, CFA, Head of Global Equity Strategy
In contrast to Q1, when key bond proxy Defensive sectors – Utilities, Real Estate and Staples – were the three worst performers, Q2 has brought a change. QTD, these three sectors are in line in Europe, making a positive swing in performance of 10%. The worst performers so far this quarter are Autos, Travel & Leisure, Chemicals, Luxury and Construction Materials – all Cyclicals. Will this shift last? We believe it will, on further repricing of a range of tail risks, and reiterate our barbell of OW Defensives and Commodities. First, many Cyclical sector...