“So the consumer will spend in a recession,” she says, but “they’ll be quite selective in terms what they spend on.”
Another example is beauty products, she added. And Koch doesn’t buy the notion that China is uninvestable: “You can buy assets here in the US as well as assets in China that are overly discounted for something that we know is eventually going to work out, which is that the economy will reopen.”
Koch joined this this week’s episode of the “What Goes Up” podcast to discuss the state of play in markets and why, despite share prices that have crashed over the past year, investing in innovative companies is still a good idea for the long term.
The tech-centric Nasdaq 100 Index has lost more than a quarter of its value since the start of the year. Koch says that there will be opportunities within the tech and innovation spaces again. “These things will work and they’re going to work really, really well. It’s just at the moment, it has been dislocated,” she said.
“The recent correction actually provides some really compelling entry points to get exposure to technology as a secular theme,” Koch said. “Tech is down at the moment, but it’s not out. Don’t give up on it.”
There’s more to that conversation. Take a listen here, or wherever you get your podcasts.