A sell-off in one equity market can quickly spread – and we have certainly seen that in recent weeks. The trouble faced by the S&P 500 in July has become more widespread, with the likes of Japanese equities facing their own struggles.
Investors with an appetite for risk may simply decide to top up on equities, but a sell-off also offers an opportunity to examine more defensive assets. The latest plunge has seen some names hold up better than others.
Looking at the period from 15 July to 6 August, which captured the brunt of the sell-off at the time of writing, those trusts that seek to defend investors’ cash have done a decent job.