The MSCI World index while higher on Monday, remains down 6.2% in January – the worst start to the year since 2016. Before Friday’s rebound the index was headed for its worst January since the global financial crisis in 2008.
Before Friday’s rebound the index was headed for its worst January since the global financial crisis in 2008.
“This is not the classic selloff affecting lower quality underperforming companies. This selloff is driven not by fundamentals but by the action of central banks at a time when growth is very strong,” said Flavio Carpenzano, Investment Director, Capital One Group.
“For years you were like a spoiled child, you could get all the money you wanted and for free and you could buy what you wanted, you didn’t care that much about quality. Now it’s the other way round, you have to be more disciplined so you need to look carefully at valuation.”
