Polarised global markets are throwing up contrarian opportunities

Are stockmarkets in a bubble or a recession? Well, arguably it is both.

There is a particularly wide dispersion of valuation multiples in stockmarkets right now, creating some interesting questions for global investors. Shares in companies that hope to 'disrupt' traditional industries, chiefly in the technology sector, have been 'red hot' for several years. Free-flowing capital has created fertile ground for such ventures but a recent flurry of IPOs may be a signal to pull the ejector lever. Meanwhile, recession fears have helped many 'safe haven' staples to deliver turbocharged returns this year. The vulnerability of elevated valuations could mean the...