Stock markets rebound from a downturn in a “turbocharged turnaround Tuesday” – Business Live.

Richard Flax, chief investment officer at Moneyfarm, acknowledges the current “challenging market environment” but suggests that the recent selloff might present an opportunity to increase equity exposure, provided the US economy avoids a recession and corporate profitability remains stable. Flax notes that the assumption of a soft landing for the US economy is now being questioned, raising concerns about whether the Federal Reserve has delayed too long in cutting interest rates. While the base case remains a slowdown without a severe recession, he emphasizes the importance of monitoring macroeconomic data. Despite recent negative returns, Flax points out that such downturns are a normal aspect of long-term investing and come after a notably strong period of market performance. He believes their portfolios are conservatively positioned and well-diversified, and sees potential for adding risky assets like equities, with ongoing assessment to determine the optimal timing and strategy.