Why 'staycation' trend is benefiting the Rathbone Recovery fund

UK seeing rising inflation

clock • 2 min read

Indiscriminate selling of UK consumer shares is creating opportunities that can be exploited, according to Alexandra Jackson and Jo Rands, fund managers on the Rathbone Recovery fund.

In the wake of the vote to leave the EU and President Donald Trump's electoral victory, many UK consumer discretionary companies have sold off markedly as investors favour the 'reflation trade' and shun consumer exposure.  There are understandable fears that rising inflation and heated Brexit negotiations will hurt earnings for domestically-focused companies.  It is possible that UK retailers and consumer product businesses become caught in a painful profits pincer: revenues could soften because of lower consumer spending while costs rise, eating into margins. Recent inflation data...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot