Opportunities and Risks in the Global Markets

Chautauqua Capital Management is a long-term, quality-growth global equity investor with a generally optimistic view. However, we are less so today. While potentially unpopular to point out market risks, we believe it is important that we be transparent about our market views and how we may be adjusting the portfolio.

To be clear, we do not possess the ability to predict a bear market. But from our perspective as enumerated in the following commentary, risks have increased, and the global financial markets appear to be at a heightened risk of a sell-off. Our concerns are around several factors, including the unwinding of extraordinary central bank policy, high valuations, investor compliancy, and heightened geopolitical risk.

We have already taken some measures to mitigate the negative impact of a potential market sell-off and provide us with greater liquidity to exploit the ensuing pricing anomalies and we may do more. In other words, it is our goal to participate in further upside and protect against the downside should the markets experience disorderly selling.

Download our complete outlook.