Investors seek ‘defensive position’ as Dow Jones reports worst month since Great Depression

JP Morgan Asset Management Executive Director Kerry Craig comments on the Dow Jones’ worst month since the Great Depression of 1932, claiming Australian investors are seeking “defensive positioning”.

“The market here is a little more insulated … a lot of the effects of the policy annulments on the US are going to have a bigger impact on the US economy,” Mr Craig communicated.

“It’s going to have an effect on Australia, but at an industry level, not at a national level … we have seen, again, those second-order effects, thinking around what it does to global growth, how China responds, potentially being somewhat of a tailwind for Australian markets as well.

“Investors are still looking for defensive positioning in the Australian market if we look at the performance of some of the financial sector just today.”