M&G's Rhodes: 'Expensive' US market offers plenty of cheap stock opportunities

Fears of a full-blown trade war and slowing economic growth appear at odds with the progress being made by companies around the world.

Corporate earnings continue to rise and dividends, the ultimate sign of management confidence, remain in good health. The abundance of growth across countries and sectors should provide comfort to investors who are seeking not only income, but attractive total returns from equities. Being selective is key in the current market environment of extremes. Investors have been willing to pay increasingly high multiples for the fastest-growing companies, most clearly demonstrated by the fortunes of US large-cap technology, to the extent that valuations appear to be unsustainable over the ...