My portfolios have been gradually pivoting towards equities in recent months and away from a more defensive positioning – a positioning that has compensated somewhat for discounts having widened significantly during the past couple of years.
Given poor market sentiment and the fact humility is an essential component of good portfolio management, it is worth re-examining the case for equities at this juncture – particularly so given we are approaching the moment of peak interest rates. In doing so, investors are encouraged to focus on company fundamentals rather than economic or market forecasts – given the former is real and the latter are invariably wrong.