2022 Q2 | Stellar AiM IHT Service – Ascentric Performance Factsheet

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The quarter ended with global growth concerns overtaking inflationary fears. To
borrow from Thomas Hobbes’s book, Leviathan, opinion differs on quite how ‘nasty’ and ‘brutish’ such a slowdown will be, but there does appear to be consensus that any recession will be relatively ‘short’. Certain investors are now actively hoping for bad economic news, which they believe will portend good equity outcomes by forcing central banks to start cutting interest rates which would drive P/E ratios higher, particularly for Quality/Growth stocks. While not without a certain logic, we believe a new playbook is needed for this decade, one that will be more inflationary than the prior. During Q2, the portfolio posted a 5.1% decline, significantly outperforming the benchmark’s 15.8% fall.

MICAP SAM