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PODCAST | – 11:16 MIN

Talking heads – Be wary of wilting growth and mindful of green shoots

Daniel Morris
By EDWARD LEES, DANIEL MORRIS 21.11.2022

In this article:

    Thematic environmental strategies face countervailing forces in the near term. Support may come from the ‘green shoots’ of the recent growth stock recovery, offset by the downdraft of recessionary risk. Investors with a longer-term view should stay focused on the tailwinds and enduring drivers of demand including regulatory and legislative support.  

    On this Talking heads podcast, Edward Lees, co-head of the environmental strategies group, tells chief market strategist Daniel Morris that 2023 should be the year of implementation for green initiatives such as the US Inflation Reduction Act, predicting some of the capital flows could last 10 years.

    On the latest earnings news, he says any weakness represents ‘delayed, not lost, revenues’. He notes the recent COP27 meeting brought ‘not nearly enough progress’, but highlighted some encouraging developments.

    You can also listen and subscribe to Talking heads on YouTube and read the transcript.

    Disclaimer

    Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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