Opportunities and Risks in the Global Markets

Chautauqua Capital Management is a long-term, quality-growth global equity investor with an  optimistic view of portfolio holdings. However, today we have concerns related to the broader financial markets.

To be clear, we do not possess the ability to predict market moves. But from our perspective as enumerated in the following commentary, risks have increased, and the global financial markets appear to be vulnerable to a sell-off. Our concerns stem from several factors, including the unwinding of extraordinary central bank monetary stimulus, high valuations, investor compliancy, and the pronounced presence of value agnostic market participants.

We have already taken some measures to mitigate the negative impact of a potential market sell-off.  Several of these steps will not impede our ability to capture upside moves.  Additionally, we are holding a little more cash in order to mitigate the impact of a sell off and provide us with greater liquidity to exploit the ensuing pricing anomalies. 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.