Disclaimer
This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.
Sometimes it feels safer to run with the herd. Like it or not, you will likely be doing exactly this with your investment portfolio. On a global basis, it has been such a feature of equity markets that the biggest have got significantly bigger, increasingly driving overall performance, and at the same time becoming a greater and greater proportion of market-cap-weighted indices. The sheer size of the US’s biggest companies means they make up a huge part of global benchmarks.
Going against the grain is hard when you are investing. It takes tenacity, self-confidence, and a willingness to be wrong until you are (eventually) proved right. As such, turning away from the Magnificent Seven will take a certain level of fortitude. But we all know that nothing lasts forever. In our view, it makes sense to look within equity markets for other areas of growth which potentially offer very different drivers to those of the biggest listed companies in the world. In this article, we look for non-crowded growth opportunities which might make sensible avenues to explore for re-investing those magnificent profits.
The Magnificent Seven have suffered a painful stumble before, and we illustrate a number of very different growth opportunities, that over the medium term could complement a portfolio. In our upcoming virtual ‘Themes for your ISA in 2024’ event, three of these managers are presenting. Click here for more information, timings, and to register.
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