Markets

Owning the largest stocks has historically been a recipe for underperformance over every period, according to value house Pzena, but the madness of benchmark construction means some investors have few choices but to.

In the near to medium term, the group forecasts “ample opportunity” in the loan asset class to generate higher than average returns while maintaining a minimal risk profile for investors.

The historic outperformance of big tech stocks in the US may look like a global outlier, but many developed markets (including ours) have high levels of concentration risk. That may not be the case for long, with a likely softening interest rate environment set to re-order indexes around the world.

Valuations at the top end of indexes are sky high, but with that comes inflated forecast earnings. For savvy investors, it may be time to rotate towards more value-oriented stocks according to Eric Marais from Orbis Investments.

The banks may not be perfect, but their collective role in facilitating a developed ecosystem, combined with the leverage they have through lending and capital allocation, means they often fall within Australian Ethical’s “investible universe”.

A huge benefit has already been realised in the price of the Magnificent Seven and it might be time to take some risk off the table instead of speculating on future fundamentals, according to Lazard.

All major cities had an increase in national property listings during the month of February, but when you pan out and look at the YoY figure, some eye-popping trends emerge.

The incredible performance of the Magnificent Seven mean investors aren’t always seeing the technological growth that’s driving industries like professional services, construction and medicine.

The “NewSpace” field has opened up in the wake of government entities pulling back their spaceflight programs across the world, which has given rise to a whole new class of Infrastructure-as-a-Service investment opportunities.

Every investor wants access to the private markets, and every manager – established or otherwise – wants to help them get it. But when there’s a new product every day, how many of them will be any good?

You don’t need to be a tech stock advocate to understand the importance of looking beyond the headlines and the hype, creating your own narrative based on facts, and assessing each opportunity with a clear lens.

Contrarian investors are adept at spotting misalignment that leads to arbitrage between real value and perceived value. But it isn’t easy. “True bargains are hard to come by,” says Orbis Investments’ Eric Marais.