Investors Turning More Defensive

| Multi-Asset

Investors Turning More Defensive

Our chart, which looks at the S&P 500 index and its options market, shows that compared to a month ago, investors have become more defensive. This positioning should help contain a significant sell-off while it would reinforce a potential sustained rally. Though there are threats to global economic growth, the macro situation is not as bad as many think and we do not foresee a global recession in the near term. Thanks to muted inflation, central bank action is increasingly on the side of investors and this should be a positive for growth assets.


20191025 COTD - Equity Skew website
Sources: Bloomberg, Unigestion. Data as at 11.10.19.

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