Remaining resolute amid market uncertainty
Jamie Ross , Portfolio Manager of Henderson EuroTrust , provides an update on the Trust , highlighting how he is navigating this volatile market environment , areas where he is finding opportunities , and how companies are dealing with higher input costs . Jamie also touches on what the war in Ukraine might mean for the energy transition .
Key Takeaways :
We are using this difficult environment for quality-growth stocks as an opportunity to move further toward this style bias . Simply put , we are finding opportunities to buy what we see as high-quality , long-term investments at reasonable valuations .
Across the board , companies are experiencing margin pressure , stemming from higher labour , freight , and energy costs . However , quality companies with strong pricing power have been able to pass on these rising costs .
Growth / quality stocks have struggled because the combination of high interest rates and inflation impacts the multiples which investors are willing to pay for these stocks . As the discount rate goes up , the valuations of these stocks go down .
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