Asset manager Anchor Capital says investors should be increasingly wary of investing in passive investment products such as exchange traded funds (ETFs) as the current global bull market is priced for perfection, which is inflating the value of large technology stocks in particular.

The predominance of large technology stocks on equity indices is highlighted by the so-called FAANG stocks (Facebook, Apple, Amazon, Netflix and Google), five of the most valuable US companies, which now constitute more than 20% of the Standard & Poor’s 500 index. In SA, Naspers constitutes about 21% of the JSE top 40 index’s market value thanks to its 31% stake in Chinese internet giant Tencent, held via its international arm, Prosus...

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