As bond yields reach all-time lows, and many developed world equity markets hit record highs, managers tell Investment Week about the consensus trades they are working hard to avoid as their search for yield continues.
Richard Penny, manager L&G UK Alpha trust and L&G UK Special Situations trust Consumer staples Markets are becoming increasingly globalised, and investors are favouring mega-cap companies with big brand franchises as risk remains subdued. This has supported the performance of consumer staples in recent months, reflected in the sector's premium valuations, which are at near all-time highs. The sector currently trades more like a bond proxy. However, consumer staples currently look overvalued. Growth is in low single-digit territory, volume trends have weakened, and there is potential ...
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