Time to focus on downside risks in markets: MFS chief

[SINGAPORE] With such robust returns from US equity markets, investors should begin to focus on downside protection, said Ted Maloney, chief executive of MFS Investment Management.

“Equity investors around the world, no matter how they’ve invested – via active, passive or global allocations – have some exposure to US technology and have done extremely well,” he observed.

“We think positioning from now, after such a prolonged and massive period of excess returns, should be to focus on how to protect on the downside. It’s human behaviour and it’s difficult for everyone, including us, to take a step back and think about where the risks may be when everyone is focused on the reward. But that’s exactly what a skilled investor gets paid to do over time.”