In our first episode, Laura Thomas is joined by James de Sausmarez, Director and Head of Investment Trusts at Janus Henderson.

Laura and James discuss bear markets and market corrections, the impact of the coronavirus and some of the features of investment trusts that will help them navigate this tumultuous time.



Bear Market

A financial market in which the prices of securities are falling. A generally accepted definition is a fall of 20% or more in an index over at least a two-month period. The opposite of a bull market.


Asset performance is often driven largely by cyclical factors tied to the state of the economy. Economies and markets are cyclical and the cycles can last from a few years to nearly a decade. Generally speaking, early cycle is when the economy transitions from recession to recovery; mid-cycle is when recovery picks up speed while in the late cycle growth slows, wages start to rise and inflation begins to pick up. At this stage, investors become invariably bullish believing that prices will continue to rise.


A measure of a company’s leverage that shows how far its operations are funded by lenders versus shareholders. It is a measure of the debt level of a company. Within investment trusts, it refers to how much money the trust borrows for investment purposes.

Market correction

A correction is a decline of more than 10% in a major stock index, e.g. the FTSE 100.


A security representing ownership, typically listed on a stock exchange. ‘Equities’ as an asset class means investments in shares, as opposed to, for instance, bonds. To have ‘equity’ in a company means to hold shares in that company and therefore have part ownership.


A grouping of financial assets such as equities, bonds and cash. Also often called a ‘fund’.