14.03.2023
Defensive equity plays
Thus far, equity markets have taken the massive re-pricing of the bond market in its stride.
For some investors, Silvergate / Silicon Valley / Signature are idiosyncratic stories. Or, even if there are systemic risks, they believe the Fed will ride to the rescue.
But for others a recession has just become significantly more likely given the new banking landscape and the implications for the real economy.
Increased insurance contributions, competition for deposits, stricter lending standards all point to a material tightening in credit conditions.
For those investors, the critical question now is what are the best defensive bets?
A quick video.
For some investors, Silvergate / Silicon Valley / Signature are idiosyncratic stories. Or, even if there are systemic risks, they believe the Fed will ride to the rescue.
But for others a recession has just become significantly more likely given the new banking landscape and the implications for the real economy.
Increased insurance contributions, competition for deposits, stricter lending standards all point to a material tightening in credit conditions.
For those investors, the critical question now is what are the best defensive bets?
A quick video.
