The below article/video was produced by Livewire Markets and published on 25 November 2021.

The contrasting worlds of cryptocurrencies (red-hot and risky) and consumer staples (lagging in the wake of the pandemic) are preoccupations of the Alphinity team at present, says its global portfolio manager, Jeff Thomson.

In this episode of Expert Insights, Thomson tells Livewire how his team are cutting through the noise to understand the opportunities and risks of crypto.

“We don’t have a view on what Bitcoin is worth,” he says. Instead Alphinity are thinking about the underlying technology and the regulatory implications.

“Once everyone knows the rules of the game, I think ultimately you’re going to see very significant investment. I think it’s going to become mainstream very, very quickly.”

He also discusses the opportunities in consumer staples and the importance of analysing pricing power.

Thomson gives two examples of consumer staples — L’Oréal and Estée Lauder — that can do no wrong. They were doing well before and during COVID, and are now cleaning up during the reopening. They have even benefited from the shift to e-commerce.

His third example, Nestlé, is another veteran that refuses to sit still, and has pricing power in multiple high-growth categories.