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: