COVID-19 Equity Market Impact – Does History Suggest We Stick to Classic Defensives?
Published on 17 Apr, 2020
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Whenever any equity market collapses, downside protection and relative outperformance become crucial. Healthcare, staples and utilities, by their very nature, are often termed classic defensives in such times.
Our analysis of previous crises shows that these sectors fared in line with their defensive characteristics in mature markets such as the US. In emerging markets, however, we notice more sector-wide recoveries.
