Cutting through the noise: The cost of living crisis
In this podcast series, Portfolio Manager, Jamie Ross, and Portfolio Analyst, David Barker, give investors an insight into the research, discussion, and analysis that shapes and influences their investment decisions.
3 Nov 2022
1 minute watch
1 minute watch
Key takeaways:
- With consumers spending less on non-essential items, the consumer discretionary sector has been one of the worst-hit. In contrast, consumer staples companies such as Nestle have been more resilient.
- The portfolio has no exposure to the automotive sector: auto manufacturers have benefitted from constrained supply and therefore strong pricing over the last 18 months. However, pricing could weaken as supply comes back into the market.
- Within industrials, stock selection has been key. We have been adding exposure to semiconductor equipment companies, including ASM and BE semiconductor as they stand to benefit from structural growth trends such as higher digitalization, the 5G upgrade cycle, and increased demand for more advanced chips.
Jamie and David talk about the cost-of-living crisis, its impact on companies within the consumer discretionary, consumer staples, autos, and industrials sectors and how it has impacted their investment decisions.
3 Nov 2022
1 minute watch
1 minute watch
Key takeaways:
- With consumers spending less on non-essential items, the consumer discretionary sector has been one of the worst-hit. In contrast, consumer staples companies such as Nestle have been more resilient.
- The portfolio has no exposure to the automotive sector: auto manufacturers have benefitted from constrained supply and therefore strong pricing over the last 18 months. However, pricing could weaken as supply comes back into the market.
- Within industrials, stock selection has been key. We have been adding exposure to semiconductor equipment companies, including ASM and BE semiconductor as they stand to benefit from structural growth trends such as higher digitalization, the 5G upgrade cycle, and increased demand for more advanced chips.