Carmignac Bets on Asian Tech to Navigate Global Economic Shifts

Thozet sees resilience in the global economy, noting that growth in the UK and Europe has outperformed initial expectations. While rising bond yields and energy price volatility present clear risks, he rejects the notion of an imminent market collapse. Instead, he advocates for an active portfolio strategy, warning that remaining on the sidelines is the primary danger for investors as the year draws to a close.

His current strategy prioritizes Asian markets, specifically Taiwan, Korea, and Japan, with direct holdings in Taiwan Semiconductor Manufacturing Company, SK Hynix, and Samsung. In Europe, he favors financials in Italy, Spain, and Greece, citing low unemployment figures and robust growth in those regions. Conversely, he is selling off US, French, and UK fixed income assets in favor of Japanese long-term bonds and the yen. While he remains invested in US tech, he views the valuations there as significantly steeper than their Asian counterparts.