Christoph Hott

“The prospect of more rate cuts has failed to stem the sell-off, as fears of a recession caused stocks sensitive to the US consumer to plunge. Cyclicals and consumer discretionary stocks have ­suffered a miserable start to 2008. The sector entered a ‘bear market’, having fallen more than 20 per cent below its ­previous market peak. As the odds of recession have grown and credit concerns have not diminished, large-cap growth funds have been a haven for those seeking ­stability. This does not speak well for overall market sentiment, but could be a possibility to outperform the stock market in the long term.”