M&G's Rhodes gears up for cheap entry points into consumer discretionary

Macroeconomic outlook darkens

As the macroeconomic environment turns more challenging in the second half of the year, Stuart Rhodes, manager of the Global Dividend fund at M&G Investments, is preparing to take advantage of good entry points into high-quality consumer discretionary stocks.

Speaking at the Morningstar Investment Conference on 5 July, Rhodes said that a higher interest rate environment and the move away from growth could bring back attention to cyclical businesses.  "Because there have been so many other options in growth, there hasn't been any reason to be worried or disappointed about what those share prices might do. They've gone up and up and up and up, and so therefore, you haven't needed to take on the risk and volatility the cyclical businesses offer," he said.  Morningstar IM's Coop: Cooling of ESG euphoria presents an opportunity for investors ...