
July 05, 2020
Applied philosophy - the unexpected defensive
Paul Jackson. Global Head of Asset Allocation Research and András Vig. Multi-Asset Strategist
A rapid bear market and an almost as rapid recovery did nothing to change market leadership as technology has continued to outperform in both phases proving to be a better “defensive” than traditional defensives. The pandemic-induced changes in the economy only accelerated structural trends that favour the sector and we think this is unlikely to change. Although we find its valuations high, we expect the sector to keep outperforming the market in risk-adjusted returns.