Global | Defensives offer cheap downside protection

We believe that the Q4 2020 rally has left global equities vulnerable to a correction. Meanwhile, rising coronavirus cases increase downside risks. In this context, traditional defensives offer attractive downside hedges.

What you will learn:

  • Defensive sectors trade on record low relative valuation multiples
  • Economic disappointment could drive their outperformance in the near-term
  • The Tech sector is more vulnerable to a discount rate shock

Topics: Equities, Strategy

Defensives offer cheap downside protection cover