Stephen Kelly, manager of the Framlington International Portfolios American Growth fund, has impresse...
Kelly sees clear evidence of a slowdown in the US economy from both the consumer and corporations. He argues that the Fed looks more likely to have engineered a slowdown in the domestic economy, but acknowledges that the lack of duration to this slowdown implies a cautious stance will still be required in the short term.
Kelly is neutrally weighted in financials, marginally overweight technology and communications services and modestly underweight basic materials, energy and consumer and capital goods. The major portfolio adjustment has been to increase the weighting to financials as the bond market has rallied and valuations by most traditional yardsticks remain appealing.
He favours biotechnology in the healthcare sector as the growth rates and production pipeline look relatively uninspiring. In technology, he favours the hardware suppliers but has increased the weighting to more duration sensitive stocks in the internet sector.
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