Market Insights: Julian McManus Highlights Key Stock Picks Amid Volatility

The financial markets have seen significant volatility in recent weeks, a development that has led to investors sharpening their pencils and reinforcing the importance of a diversified and resilient investment portfolio. As political decisions shape economic landscapes, market analyst Julian McManus of Janus Henderson Investors has articulated a keen understanding of the current environment and has shared seven stock picks that may well weather the impending economic storms.

Trump’s Policy Shift: A Response to Market Discipline

Last week, President Donald Trump made headlines by delaying tariffs that he had planned to impose on numerous countries. This decision came after a turbulent reaction from the stock market, which saw the S&P 500 plummet by over 12% following Trump’s April 2 tariff announcement. However, a remarkable rebound occurred when Trump announced a 90-day hold on most new tariffs, with the S&P 500 gaining almost 10% on April 9 alone.

As McManus suggests, these fluctuations reveal how markets “enforce discipline” on economic policies, especially when stress signals, such as rising bond yields, are observed. The swift shifts in market sentiment point to a realization that a confrontational tariff stance against all trading partners might not be tenable in the long run. Instead, it is increasingly evident that China remains the focal point of Trump’s trade strategy.

Defensive Stock Selections for Challenging Times

In light of the inflation pressures expected to prevail in the near term, McManus has outlined an impressive selection of seven stocks that stand out due to their potential resilience. Notably, three of these stocks operate under subscription models, which McManus anticipates will allow them to maintain stability even during economic downturns. These stocks include:

• Spotify Technology SA (SPOT)
• Deutsche Telekom AG (XE:DTE)
• T-Mobile US Inc. (TMUS)

Furthermore, McManus highlights Liberty Media Corp. Series C Liberty Formula One (FWONK) as a defensive play. With an enthusiastic fan base and a market cap of $17.2 billion, Formula One is considered one of the last major sports assets available on the public market, increasing its appeal to potential acquirers in the media space.

The Appeal of Defense Contracts and Electric Vehicles

In line with current global tensions and rearmament trends, McManus also favors two prominent defense contractors:

• BAE Systems PLC (UK:BA)
• Rheinmetall AG (XE:RHM)

These companies present compelling investment opportunities against the backdrop of increased military spending in Europe.

On the forward-looking side, McManus is equally enthusiastic about BYD Co. Ltd (HK:1211), a company making significant strides in the electric vehicle market. With a robust delivery pipeline—having delivered substantially more vehicles than competitors like Tesla during the last quarter—BYD is positioned well not just in China but also with an upcoming factory in Hungary aimed at European expansion.

Understanding the Core of McManus’s Portfolio

As co-manager of the $3.3 billion Janus Henderson Overseas Fund and $2.7 billion Janus Henderson Global Select Fund, McManus employs a strategy that focuses on stocks with strong fundamental underpinnings that can weather volatility. Here are some insights into the funds’ top holdings:

Janus Henderson Overseas Fund Top Holdings

• Taiwan Semiconductor Manufacturing Co. Ltd. (TW:2330) – 6.69%
• BAE Systems PLC (UK:BA) – 4.33%
• Liberty Media Corp. Series C Liberty Formula One (FWONK) – 3.90%
• Erste Group Bank AG (AT:EBS) – 3.89%
• Dai-ichi Life Holdings Inc. (JP:8750) – 3.51%
• Sanofi S.A. (FR:SAN) – 3.32%
• Deutsche Telekom AG (XE:DTE) – 3.21%
• HDFC Bank Ltd. (IN:500180) – 3.09%
• AstraZeneca PLC (UK:AZN) – 3.03%
• Resona Holdings Inc. (JP:8308) – 3.02%

Janus Henderson Global Select Fund Top Holdings

• Taiwan Semiconductor Manufacturing Co. Ltd. (TW:2330) – 6.59%
• Microsoft Corp. (MSFT) – 4.55%
• Nvidia Corp. (NVDA) – 3.92%
• Arthur J. Gallagher & Co. (AJG) – 3.91%
• BAE Systems PLC (UK:BA) – 3.89%
• Liberty Media Corp. Series C Liberty Formula One (FWONK) – 3.58%
• Amazon Inc. (AMZN) – 3.31%
• TJX Cos. Inc. (TJX) – 3.19%
• Chipotle Mexican Grill Inc. (CMG) – 2.93%
• Teck Resources Ltd. Class B (CA:TECK.B) – 2.70%

Conclusion: Preparing for Tomorrow’s Challenges

As we move deeper into a market landscape marked by volatility, adhering to traditional financial principles becomes paramount. The stock selections presented by Julian McManus exhibit a clarity of purpose that should resonate with conservative investors. Building a resilient portfolio amid unpredictable economic policies and inflationary pressures will require strategic foresight and an unwavering commitment to the fundamentals. Now is the time to be prudent, and these stock picks offer a promising avenue for those prepared to weather the storm ahead.