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Market Insight - October 2020

Market turmoil returns as the US election approaches

Fran├žois Savary, Chief Investment Officer
Prime Partners SA,  October 2020

Market turmoil returns as the US election approaches

Last month, we said that the easy part was over for the equity markets, after a sharp rally since March 2020.

This observation dovetailed with our intention to maintain a cautious approach to the stock markets; to put our words into practice, we commented at the end of August that we were increasing hedging on our allocations in the form of a put spread warrant.

The developments seen in recent weeks, characterised by equity market consolidation and consequently a return of volatility, have broadly proved us right. It is true that our portfolios have not escaped the negative effects of falling asset prices; however, we have limited our losses through our defensive investment policy.

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Prime Partners SA

Independent Wealth Manager and Multi-Family Office