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Podcast: All into Account
Episode: Equity Strategy: Where is overvaluation? Not in Mag-7, at least not relatively… it is Cyclicals that appear stretched
Description: Speaker: Mislav Matejka, CFA, Head of Global Equity Strategy
We favoured Growth over Value style through last year, and again so far ytd, arguing that the Nov-Dec Value rally – such as an outperformance of BKX and of small caps seen at the time – was unlikely to last. There is a clear concern over how sustainable the Mag -7 run is, but we note that this group of stocks is not trading increasingly more expensive, at least not in relative terms. In fact, Mag-7 stocks appear cheaper at present vs the rest of the market than they were trad...