The world is increasingly focused on resilience, security, and strategic self-sufficiency. Capital is progressively flowing back to foundational needs such as critical energy infrastructure and defence.
The global banking system has proven both resilient and lucrative for investors since it seemed to teeter on collapse just over a year ago. The turnaround highlights the kind of alternatives available for those that don’t see enough value in the prevailing big tech stocks.
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.
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.
It’s hard to exceed stratospheric expectations, which is the proposition investors buying into the big US tech stocks face. Hunting for lower bars to hurdle likely makes sense in this unique market era, according to Orbis Investments.
Investors may be in love with the ‘magnificent seven’ technology stocks, yet the top end of the stock market is notoriously volatile. That’s worth noting for devotees of passive investing, says Orbis Investments.
The recent underappreciation of value stocks has made them an attractive proposition, but knowing the most important metrics to look at when appraising companies is crucial.
