Insights


Sector & Equity Compass – Q3 2022 Webinar Replay

The likelihood of recession may not be known for months and, therefore, barbells and thematic plays could help portfolios. Investors can use sectors for diversification to reduce risk and avoid the more challenging parts of the equity markets. In our latest webinar, we explore these themes and discuss how investors can navigate markets as we progress into Q3 and beyond.



Sector & Equity Compass: Ready for Everything

Link to webinar: click here

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Speakers 

Rebecca Chesworth, ETF Strategist, SPDR ETFs 

Elliot Hentov, Head of Macro Policy Research, State Street Global Advisors

Overview

The webinar recording covers some of the biggest issues in geopolitics and macroeconomics facing investors and sector ideas to consider for Q3. 

The main macro topics discussed are: 

  • Outlook for a hard landing across economies internationally 
  • Crude oil price vulnerability to geopolitics 
  • Delayed reopening in China 
  • ECB interest rate expectations

For this quarter, we continue to consider the themes of inflation, rates and value, together with greater attention to where earnings forecasts may fall. 

SPDR Sector Picks for Q3 are: 

  • Financials in Europe – we give the case for the whole sector (not just banking) and Europe (more attractive relative to the US), plus look at a proposed tax on Spanish banks. 
  • Energy in US/Europe/World – the energy trade is not over. The need to include the sector in portfolios benefiting from inflation remains. 
  • Health Care in US/Europe/World – our favoured defensive to barbell with the energy exposure. 
  • Industrials in US/World – a thematic play.

 


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