Contrarian Investor: The specialist risk illusion

The bears are wrong

Gloom and despair turns to rally and relief in an instant - and then Chinese markets tumble again. Such is the way of markets, writes David Stevenson.

For the record, the bears were and are wrong and we have collectively engaged in another equity tantrum, hugely underestimating the potential positive drivers for global markets in 2016. But whatever my view, the experience of the last few weeks has been particularly painful for those of us who are long tech and healthcare stocks. Most businesses in this increasingly broad segment of the market are, in effect, growth stocks boasting high betas, which means they inevitably plummet as markets turn bearish. I am happy to take this risk, but a growing number of mainstream investors are...