Source: Bloomberg, Beaumont Capital Management (BCM). Data for the period 6/28/1996 through 6/28/2021.
While the recovery may continue to be directionally predictable, we know that the markets will not be. The current environment may necessarily seem speculative simply because investors have less than the usual information to go off as we recover from such an anomalous event. This should continue to drive wide swings within sectors of the market even with a healthy economic backdrop. We continue to believe Decathlon’s approach is as useful as ever in this type of environment. Relative opportunities may be shorter-term and even harder to capitalize on without a systemic process, and investors can potentially benefit from strong markets while protecting against a change in trend should it occur.
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This article was contributed by the Beaumont Capital Management (BCM) Investment Team. For more insights like these, visit BCM’s blog here.
David M. Haviland a Managing Partner of the firm and Lead Portfolio Manager of Beaumont Capital Management (BCM). Check out his full bio here.