Can US Equity Dominance Be Sustained?
Published on March 8, 2024
No, we anticipate performance will broaden out beyond mega-cap tech stocks, which have driven US equity performance in recent years. Tech giants are vulnerable to disappointment by the elevated expectations reflected in valuations. Even well-run tech giants that continue to dominate their sectors and maintain high profitability may not deliver strong returns if their stock prices discount too much near-term optimism. Investors should maintain diversified global equity exposure that includes modest overweights to small-cap equities and value equities, which we regard as attractive today.
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