Bearish behaviour should be avoided

Writing in mid-October about the prospects for European equities is something of a hospital pass. But this month's collapse in stock prices, not just in technology but across the board, has, if anything, merely served to underline our view about the likely future direction of European equity markets and confirmed the relevance of our stock disciplines. Our central case of a US soft landing remains in place. All the evidence is of slowing growth but recessionary fears are overblown, despite the spike in the oil price. Simultaneously, we remain optimistic on the prospects for inflation. Raw...