December 2021 / VIDEO
Three Contrarian Investing Views on China, Stagflation, Supply Chains
We think the market’s consensus on stagflation, supply chain shortages, and China may be wrong
Key Insights
- We have identified three contrarian investing ideas.
- We think the market’s current consensus of a stagflationary environment, in which growth is stagnant but inflation is high, is likely to prove incorrect.
- We also think product shortages and supply chain bottlenecks are likely peaking and that it’s time to get constructive on China.
IMPORTANT INFORMATION
Where securities are mentioned, the specific securities identified and described are for informational purposes only and do not represent recommendations.
This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.
It is not intended for distribution to retail investors in any jurisdiction.
December 2021 / INVESTMENT INSIGHTS
Rick de los Reyes is the portfolio manager for the Macro and Absolute Return Strategies and a co-portfolio manager for the Multi-Strategy Total Return Strategy in the Multi-Asset Division. He is a member of the Asset Allocation Committee and the Investment Advisory Committees of the Global Natural Resources Equity, Real Assets, Global Focused Growth Equity, Global Growth Equity, Global Value Equity, and International Value Equity Strategies. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.