no mention of sectors I see. Just going to cash. a little simplistic.
the table above compares sectors in the Magellan global fund with the international index (VGS)
Hamish is underweight tech
why?
probably inflation and rising interest rates
He is overweight communications
I'd say communications out perform in a pandemic. People avoid face to face contact and communicate via other means. It is very difficult to get AIDs when you use cyber sex right?
Then he is overweight staples and utiltities.
well, that makes sense to me. when everybody at home they still need food, water, gas and electricity, right?
and he favours discretionary over materials and energy.
Probably because branded products have superior moats to commodity like products.
Plus commodities get hit hard in a downturn.
Just look at the sector weighting and you will see why Magellan will outperform in a downturn particularly in an Omicron induced downturn.
by the way case numbers have almost doubled in the last couple of days in NSW.
(20min delay)