Responding to questions from those on the front lines, in his August TAKE, Senior Portfolio Manager Andrew Slimmon shares his thoughts for what could be ahead for the equity markets.
16.08.2023 | 08:02 Uhr
We listen to you!
One of the many aspects of this business I love is the relationship between corporate fundamentals and behavioral finance and its net impact on stock prices. Anyone who follows us is likely aware of that.
As it pertains to corporate fundamentals, my team and I spend a huge portion of our day listening to calls, reading reports, and analysing companies.
On the behavioral side, I am enormously fortunate to have such a great group of readers who are on the front lines working with clients directly. I greatly value their feedback.
What does that have to do with this Slimmon’s TAKE?
When Leslie or I receive consistent feedback from those of you on the front lines, we listen:
Those are just two of many comments.
Let’s rewind back to February 2021 when, after 11 months of selling equities off the covid-lows and a 66% rally in the S&P 500, retail fund flows turned positive. Investors decided to show up to the party.
Now, fast forward to last year’s bear market. Flows turned consistently negative in September 2022 and have remained so despite a 26% rally off the October 12th, 2022, low.2
Therefore, I assumed that given we are nearing the one-year anniversary of “selling after a bear market”, it was time for investors to flip, as they did in 2021.