Fear of recession was the only concern of investors since the beginning of August. Several warning signs from key economic players were released indicating a global economic slowdown: weakening economy data from Europe and China, US-China currency war, yield curve inversion and major rate cut were announced by several central banks. Some analysts and asset managers concluded that there is a high probability of a global recession in the coming 12 months.
During recessions, investors tend to overweight counter-cyclical stocks similar to fast food companies or discount retailers. Those companies tend to outperform during downturns.