Beyoncé is recession-proof, Goldman chief manager bet
Investors on all sides struggle to figure out the best way to fend for themselves amid concerns that a recession is on the horizon.
Investors on all sides are scrambling to figure out the best way to defend themselves amid concerns that a recession is on the horizon. One of the top executives at Goldman Sachs Asset Management has a surprising idea: Beyoncé.
Katie Koch, GSAM’s chief equity investment officer, jokes that the singer-songwriter “Beyoncé is recession-proof,” as are other stars.
That’s why the portfolios she oversees hold shares in live-show companies in the US and Europe. While Live Nation Entertainment was hit hard during the Covid-19 lockdowns, she points out that the company actually weathered the last recession well and managed to increase revenue in 2008 and 2009.
“Consumers will spend in a recession,” she says, but “will be very selective.” Another example is beauty products, she added.
Koch doesn’t subscribe to the notion that you can’t invest in China: “You can buy assets here in the US, as well as assets in China that are heavily discounted for something that we know will eventually work out, which is that the economy will reopen. .”
Koch participated in this week’s episode of Bloomberg’s “What Goes Up” podcast to discuss the state of the markets and why, despite stock prices that have plummeted over the past year, investing in innovative companies is still a good idea in the long run.
The technology-centric Nasdaq 100 index has lost more than a quarter of its value since the start of the year. Koch says there will be opportunities in the tech and innovation spaces again.
“These things are going to work and they are going to work very, very well. It’s just at the moment that they were displaced,” she said.
“The recent correction provides some really attractive entry points to gain exposure to the technology,” Koch said. “Technology is down at the moment, but it’s not out. Don’t give up on her.”