Inflation concerns is shifting to recession fears. The strategy is to look for the thematic winners of this decade, not the previous one.
Key takeaways from this month's comment by Jean-Pierre Chevalier:
- Economic growth is softening as supply normalizes in goods and labour. This will help get inflation back under control and stop the rise in long-term interest rates. Commodities and politics are the wildcards.
- Dislocations are apparent in many structural growth opportunities, but selectivity remains important. Biotechnology and software valuations are interesting.
- US equity indexes have a leadership problem. The strategy is to look for the thematic winners of this decade, not the previous one.
Jean-Pierre Chevalier, CFA
Senior Director, Portfolio Manager, U.S. Equities and Thematic Investing, iAIM
