Q2 Market Commentary – July 2021

Bears are creatures that most of us would agree are best avoided, for unlike Paddington, who is partial to the odd Marmalade sandwich, most real-life bears would happily make a meal out of any human that strayed too close. Thankfully, although scary, Bears in financial markets are not to be feared.

But what does a Bear actually mean in the context of financial markets? Although no universally agreed definition exists, it’s widely accepted that a Bear market represents a price decrease of more than 20% relative to a previous peak. And why do we use the terminology “Bear” as opposed to something less intimidating? Well, this is attributed to how Bears attack their prey, swiping their paws downwards; and when markets are on the up, we name them Bulls, as Bulls thrust their horns up while attacking. Markets cycle between Bear and Bull markets but over the long run, there is only one direction that financial markets head: up!

You can read and download the full Q2 Market Commentary from our Investment Committee in the document below.

Alternatively, click here if you’d rather view it in a separate browser window.