Lead Story

No defence

Whether you assume an economic revival or a slump post-election, one thing is certain: defensives will disappoint

Soumik Kar

Depending on the mood of Mr Market — the fabled character created by Benjamin Graham, the father of value investing — either stock prices run ahead of themselves (bull markets) or stay in coma (bear markets) for periods longer than most can anticipate. When markets are coming out of a bear phase, they are apprehensive and don’t immediately take notice of the gradual, albeit real, positive changes taking place in fundamental factors.