FMs are holding their lowest exposure to consumer discretionary since late 2022, with rising inflation expectations not helping. Elsewhere, FMs bought healthcare, staples, and energy while reducing discretionary retail, banks and insurance – a net defensive move. If/when the Iranian conflict does get resolved, buying is likely to return to the retailers on the hopes that inflation concerns will fall.
- Bottom line: We believe members should consider accumulating some quality retail exposure.
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FMs Consumer Discretionary exposure – source BofA Global Fund Manager Survey
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FMs Consumer Discretionary exposure – source BofA Global Fund Manager Survey
