Graham Duce

“The mass selling down of equity and credit markets this month was reminiscent of the selling witnessed in 2008. However, unlike 2008, the reaction by the authorities, while slow, is clearer in that they will attempt to promote economic activity and help the banking sector if necessary. Meanwhile, companies now have strong balance sheets and little debt compared to 2008. While economic activity has got weaker than expected, we believe that given current valuations, this is an attractive entry point for medium-term investors and we have been using the market weakness to add to risk where appropriate.”