Investing
Why You Should Avoid Value and Reopening Stocks, According to a Star Fund Manager
Terry Smith, who manages about $39 billion, recommends companies with higher gross margins that can outperform as inflation takes hold.
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British fund manager Terry Smith is steering clear of the rotation into value stocks and companies that will benefit from economic reopenings.
The head of the giant Fundsmith Equity fund at Fundsmith LLP said in his annual letter to investors that timing the market when such equities will outperform is difficult. Additionally, the market may have already priced in the benefits of post-pandemic economic reopenings for firms such as airlines and hotels.