On investing and intuition

Sometimes the stocks that attract the most concerns from investors present the best opportunities.

 

 

Throughout 2018, slowing economic growth in China and rising US interest rates dictated, to a significant extent, how many investors behaved.

During this period it was the fast-growing businesses and "bond proxies" that performed the best, while those with cyclical earnings tended to falter. Overall, these trends have led to a premium being placed on safety and predictability.

Given the above, it might seem counter-intuitive to remain invested in cyclical businesses. But as this piece by Platinum Asset Management explains, there are deeper factors at play affecting the long-term performance of different companies, even cyclical ones.

In this piece, you will learn:

  • why high valuations are being paid for businesses with defensive but growing earnings
  • where investment opportunities can be found in times of market polarisation
  • how even notoriously difficult sectors can still comprise great businesses
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25 June, 2019

Alex Burke,Senior Writer,No More Practice Education

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