Please explain your methodology and its limitations in the current environment.
What makes forming a coherent equity strategy so difficult now, is that there are no reference points historical relationships and normal cyclical patterns have been overwhelmed by recent events in the financial markets and their effects on real economies. But, in any case, it is important to realise that our asset allocation and equity strategy methodology is an art -- not a science. We don't simply put data into a quantitative model in order to produce an optimised result. Saying that, we do use a scorecard as a guide, that is, a seven-factor matrix, but its weightings and even the factors themselves are adjusted...
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