202. War, inflation and the threat of recession – why history tells us to be contrarian in difficult markets

Although Europe is once again under the microscope for all the wrong reasons, Waverton European Capital Growth co-manager Chris Garsten believes the much-maligned market is now a far more compelling investment proposition than it was eight months ago. He also talks to us about the threat of recession and why he feels it is important to go against the consensus when markets are difficult. Chris also talks to us about why the political need for the Euro to succeed will prevent any further break up. He also runs through the cyclical recovery opportunities he is finding in a post Covid world and the importance of having a strong investment process to find opportunities in the ESG space.
Apple Podcast Spotify Podcast

The managers of Waverton European Capital Growth fund focus on finding companies whose management interests are aligned with shareholders, have earnings visibility, pricing power, cash generation and return on capital. But companies don’t have to have all these attributes at the point of investment – indeed, many of their best ideas are businesses in the early stages of reform.

What’s covered in this episode:

  • Why challenges equal opportunities in a post-Covid world and the attraction of cyclical recovery stocks
  • How the semiconductor shortage benefitted car companies
  • Why finding ESG winners is anything but straightforward
  • How new EU rules around sustainability could impact capital flows into miners
  • Why he is a fan of Scandinavian/Nordic companies and the importance of “strategic thinkers” like Nestle and Rush
  • His fears about recession in Europe and why history tells us to be contrarian in difficult markets
  • Why the political will for the Euro to succeed means it is unlikely to break up
  • Why Europe looks a more interesting investment than it did eight months ago
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

More Episodes