Harrison: Navigating the summer panic

VOLATILITY, UNCERTAINTY, OPPORTUNITY

Threadneedle head of equities Leigh Harrison says he is taking comfort from corporates even as fears of a replay of 2008 remain high.

The week ending 12 August saw intra-day volatility at extremes in equity markets as investors recognised and moved to discount the risks that are plaguing the investment outlook. The anaemic pace of economic growth displayed by developed economies in the second quarter and the perceived lack of remaining policy options, together with the absence of decisive political leadership in the US and in Europe, led investors to price in a higher risk of a renewed period of sub-par economic growth and to aggressively sell equities. As a result, the MSCI World index lost 11.6% in US$ terms for ...