Stay defensive for now
Given the macro-economic environment with Western World PMIs continuing to slow and pressure on the consumer, we think a technical recession looks more likely than ever. We believe that it could be much more than a technical recession in the Eurozone which is likely to suffer the worst, and the longest, from the Energy Crisis. That likely means further downside for industrially-leveraged materials, and for associated equities, in our view. We don’t see China going back to work as huge cause for confidence in base metals and steel. It would take a GFC-sized stimulus for us to get excited about...