Companies exposed to the domestic economy are a better bet than international franchises, says James Griffin, manager of the Fidelity Moneybuilder Growth fund.
I have been positive on domestic UK for some time now and have shifted my portfolio away from international franchises towards industry winners with more of a domestic focus. Equity valuations, especially in large caps, remain attractive, particularly versus other asset classes. The financials sector is a clear beneficiary of the recovery. The banks have seen a rehabilitation since the crisis with a shift towards much more stable, cash-generative business models with a lower tolerance of risk. For example, Lloyds now has a dominant market share in retail banking and mortgages in the...
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