David Giroux, portfolio manager at T. Rowe Price, said he has already sold shares of energy companies in his portfolio—which have outperformed this year—while buying tech stocks like Nvidia Corp., Apple Inc. and Amazon.com Inc. He said he expects oil prices to fall and inflation to moderate over the coming year while economic growth slows down, helping tech stocks. He predicts major indexes can still notch gains for the year, recovering their steep losses. “We have really fundamentally changed” our portfolio, Mr. Giroux said. “A year ago you would’ve seen a big bet on value [stocks]. Now everybody loves that stuff—we’ve been selling that hand over fist.”
Excerpted from: “Ukraine Crisis Upends Investing Playbook for 2022”
The Wall Street Journal, February 28, 2022
Techs although appear cheaper than last yr
I believe it was Yogi (the 1st) who said making predictions - especially about the future - is difficult. Giroux turned guru?
Thanks @LewisBraham for the plethora of charts showing relative values & performances of value stocks vs growth over many years. Still trying to digest.
PS - Looks like another blood-bath in the markets shaping up today - unless you like seeing oil jump higher by 10% or so in a day’s time. Wonder if that interview was conducted prior to the invasion of Ukraine? Likely.
Personally, I wouldn’t be loading up on Amazon and the mega-caps now. But that’s why he’s paid big bucks to manage PRWCX and has won all kinds of awards, plus coverage in Barron’s and the WSJ and is also widely acclaimed on this forum. I do wonder to what extent his hand is forced, as the size of PRWCX would really impact the price of smaller companies when bought or sold in any appreciable amount.
Fidelity, on the other hand, seldom closes their funds. Dandoff’s Contra fund is still good but nowhere near as dominant as when the fund was much smaller.
Top 10 Holdings (02/28/2022)
Data as of:
% of Fund
GE -- 4.67%
Yum! Brands-- 3.16%
Thermo Fisher Scientific-- 2.99%
Becton, Dickinson & Company-- 2.34%
PNC Financial Services Group-- 2.32%