Tweaks, not total changes, are what money managers said they're advising their clients to do amid the escalating Russian war on Ukraine and its effects on the global economy.
While Rhys Williams, Bryn Mawr, Pa.-based chief strategist at Spouting Rock Asset Management, a multiboutique manager providing alternative, traditional, and thematic investment solutions, said he's advising clients not to make any drastic moves, "we are also not aggressively buying the dip as a prolonged war or conflict is possible."
Mr. Williams currently likes big tech stocks because they have "consumer-staple-like qualities in the 21st century" and most have few supply chain uncertainties. He said he also likes real estate investment trusts "for their dividend yield and growth, and they underperformed in the first two months of 2022. In addition, we like energy (stocks) as a hedge against a wider war, but also because of underinvestment (in the sector) in recent years."
Mr. Williams thinks the while the Federal Reserve Board will indeed raise rates at its next meeting this month, the Ukraine war is going to affect both costs and consumer demand. "So, we think the Fed will be less aggressive in both the number and size of rate increases than the consensus was a (couple weeks) ago as long as the Ukraine war could lead to wider conflict," he added.