Katie Koch, the chief investment officer for public equities at Goldman Sachs Asset Management (GSAM), quips that “Beyoncé is ultimately recession-resistant,” and so are other popular artists.
That’s why the portfolios she helps oversee own shares of live-concert companies in the US and Europe.
Though Live Nation Entertainment Inc (NYSE:LYV) got hit hard during COVID-19 lockdowns, she points out that the company weathered the previous recession well and managed to grow revenue in 2008 and 2009, Bloomberg reports.
“So the consumer will spend in a recession,” she says, but “they’ll be quite selective in what they spend on.”
Another example is beauty products, Beyonce added. And Koch doesn’t buy the notion that China is uninvestable: “You can buy assets here in the US and in China that is overly discounted for something that we know is eventually going to work out, which is that the economy will reopen.”
The tech-centric Nasdaq 100 Index has lost more than 25% of its value since the start of 2022.
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.”
