Will rising inflation mean that technology stocks are set for a bumpier ride? According to Simon Barnard, the Smithson Trust asset manager, “yes, that’s possible”. But he is sanguine about any long-term threat to earnings for the companies in the FTSE 250 constituent’s portfolio, which attributes almost half its net asset value to businesses within the information technology sector.
Perhaps he is right to be. In the face of rising market volatility that has greeted the new variant of Covid-19, the recovery in cheaply valued stocks most affected by pandemic restrictions has come to an abrupt halt. There’s a chance that companies priced for high earnings growth are again perceived as safe havens.
Smithson was launched in 2018 by Fundsmith, the fund manager, to
