Don’t forget the magnificent middle
The S&P 500’s magnificent seven have made us all richer this year but investors ignore the less illustrious, cheaper shares at their peril
The S&P 500’s recovery over the past year has obscured some relatively cheap value stocks across the world. Or as Dan Brocklebank, portfolio manager at Orbis Asset Management puts it: the magnificent seven stocks have drawn investors away from the magnificent middle — those mid-cap stocks easily overlooked in a bid to make a quick return.
The magnificent seven comprise Amazon, Apple, Google parent Alphabet, Meta, Microsoft, Nvidia and Tesla. Combined, they constituted 29% of the S&P 500 at the end of last month. Thanks to their surging share prices, the index now trades at a hefty p:e of 21.7 and a price-to-book ratio of four...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.