An economy on standby, and this for weeks or months, is likely to leave a significant dent in the global growth path. It is not without reason that governments are now putting together economic stimulus packages and further monetary policy measures.
The situation on the financial markets has hardly changed compared to the previous week. Price fluctuations have reached a level last seen in the financial crisis of 2008. The very optimistic valuations of 4 weeks ago have now turned into pessimistic prospects for most companies. The sharp drop in share prices even implies valuations that assume that companies will not be able to pay dividends in the next 5-7 years. Above all, cyclical sectors such as industry and finance are losing ground, while defensive sectors have also suffered losses, but have held up comparatively well.
In this market environment, OLZ equity strategies were able to systematically outperform. The optimized stock selection and the more defensive sector allocation led to a cushioning of the losses.