Markets in Focus video
Markets in Focus: Where’s the Value in Defensive Positioning?
October 18, 2021
Watch our latest Asset TV video to learn how factors can provide insight as investors consider portfolio-allocation decisions.
Global equities were down in Q3 2021 ending a run of five consecutive quarters of positive returns. Despite strong returns in the last year, indicators of economic growth have slowed, and rising concerns of stagflation may give rise to defensive positioning, prompting investors to turn to defensive equity factors to reduce risk.
Mark Carver, Global Head of Equity Factor Products at MSCI, Hitendra Varsani, Executive Director, Global Solutions Research and Mehdi Alighanbari, Executive Director, MSCI Research discuss the shift towards more defensive factors, take a deeper look at industry momentum’s historical premium and share how factors can provide insight as investors consider portfolio-allocation decisions.
Concerns over corporate leverage in China, and nervousness about inflation and the direction of interest rates were just a few of the reasons behind the shift toward defensive factors in the third quarter.Listen to Podcast
In the wake of the volatility seen over the last few days of the third quarter of 2021, we check back in with Hitendra Varsani about what happened, what may have been behind it and what MSCI’s multi-factor model showed as of Sept. 30, 2021.Listen to Podcast
While equity markets have delivered strong returns in the last year, rising concerns of stagflation may give rise to defensive positioning.Read Blog