Capital deployment

The grim specific circumstances aside, the drawdown thus far in US equities isn’t yet anomalous, relative to any given year, on average.


Zooming out, it is, thus far, just another item on the wall of worry. The US has a great deal of energy independence, and has, thanks to much more aggressive monetary and fiscal stimulus, a far stronger economic momentum behind it.


That said, the current 12% drawdown isn’t nothing either, and more interestingly, many of the European equity market regions are experiencing a much stronger drawdown. The DAX (German bourse) is essentially in a bear market.

We are mindful of our 600 bp underweight to equities, and are happy to have a very small deployment of capital, from our defensive allocations, to growth.

And whilst not being interested in China, specifically, it is worth noting that many of the Asia/China indices/sub-indices, have been crushed over the past few months.


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