Morningstar IM's Needham and Kemp: SA and China are better bets than US

Interview with president and CIO

Elliot Gulliver-Needham
clock • 4 min read

Daniel Needham and Dan Kemp talk to Elliot Gulliver-Needham about why FAANGs are too expensive, the opportunities coming about of Beijing and Pretoria, and why they believe inflation is not necessarily a bad thing.

In the year to 17 November the MSCI USA index has returned 30% while the MSCI World has returned 25.7% and the MSCI World ex USA has returned just 18.14%, according to FE fundinfo.  Yet, when asked which regions they see the most potential in, Morningstar CIO Dan Kemp tells Investment Week, "we are definitely underweight to the US".  He says this is because of the high concentration of very expensive stocks.  In the benchmark index, the S&P 500, the top five stocks now represent over 20% and are edging steadily towards making up 30% of the index. "That is a concentrated index, a...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Market Movers Blog: US 10-year Treasury yields remain above 4% ahead of election night

Market Movers Blog: US 10-year Treasury yields remain above 4% ahead of election night

Latest news and analysis

Investment Week
clock 01 November 2024 • 1 min read
Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Gilts reach year-to-date high

Linus Uhlig
clock 30 October 2024 • 2 min read
Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

No extension of freeze in thresholds beyond 2028

clock 30 October 2024 • 3 min read
Trustpilot