Prepare portfolios as equity correction looms

EQUITIES

Charles L Heenan, investment director at Kennox Asset Management and manager of the Kennox Strategic Value fund, examines how investors should be playing the current environment.

The citizens of 18th century Königsberg, Prussia (present day Kalingrad) had an unusual way of marking time: by observing the daily movements of their fellow inhabitant, philosopher Immanuel Kant. It is said that his schedule was so precise that neighbours set their clocks by his regular walks. Such consistency is perhaps not surprising given that Kant attempted to establish a universal law – applicable at all times, to all individuals – by which to guide human behaviour. Unlike Kant’s neighbours, investors do not have the same constancy by which to set their investment agendas. Nor d...