Barron's Gives Some Bullish Fund Manager Ide

Barron’s headline: The Market Carnage May Not Be Over, but Fund Managers Are Already Buying These Types of Stocks

The worry of the month is that the U.S. is headed for a recession, but several fund managers at this week’s Morningstar Investment Conference said they don’t expect a severe slowdown. They are starting to hunt for bargains in the hard-hit tech sector and among industrial companies.

Kate Moore, head of thematic strategy for BlackRock ’s Global Allocation Team, said at a panel discussion in Chicago that corporate balance sheets and behavior so far don’t suggest a significant decline in economic activity. T. Rowe Price Capital Appreciation manager David Giroux also isn’t too worried about a severe recession, but he says more declines are possible for technology companies that had been selling at lofty valuations without much prospect for profits in the foreseeable future. Those stocks are still expensive, he said.