River and Mercantile’s James Sym: Will 2022 be the year the industry starts doing ESG properly?

James Sym, Head of European Equities at River and Mercantile says that 2022 will be the year that the industry stops playing at ESG, and starts doing it properly. 

“I see three investment conclusions to be expressed in portfolios in 2022:

  • First, two years after the economic nadir we are moving from early-cycle to mid-cycle. This means we are more cautious on early-cycle stocks and those most at risk from an inventory correction, which we view as a distinct possibility in H2 2022 as supply chains normalise. However, cyclicals in the broadest sense should be okay, especially where they are exposed to areas such as tourism which are still depressed through covid policies.
  • Secondly, if inflation does prove to be more stubborn and capital more discriminating, which we think is likely, beware excessive valuations – by which we mean the over 10x sales, 50x earnings variety.
  • Thirdly, stick with the preeminent theme of this cycle, which is the opportunity afforded by decarbonisation. This is precisely where an investment boom – borderline mandated by governments in Europe, is most likely to take place.”

Click here to read the full article

Related Articles

Sign up to the IFA Newsletter

Name

Trending Articles


IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast – listen to the latest episode

IFA Magazine
Privacy Overview

Our website uses cookies to enhance your experience and to help us understand how you interact with our site. Read our full Cookie Policy for more information.