First in and first out - China as the vanguard for COVID-19 recovery
China’s path to normalisation offers guidance for other countries’ exit from the lockdown. Where are the opportunities for investors?
Apr 12, 2022
A shock new market regime of record inflation, central bank activity, stagflation and the resurgence of COVID in China is creating a high degree of investor uncertainty.
Value has proved the best performing investment style since the beginning of 2021, but decelerating economic growth and inflationary pressures are clouding its outlook.
Dominant over the past decade, the growth style is being challenged by rising interest rates.
A worsening crisis in Europe could see the quality style outperform.
While some investors might be fixated on which equity style will be next to prevail, we believe that investors would benefit from a more agnostic approach that utilises bottom-up stock selection, rather than allocating to particular characteristics, sectors or regions.