US concentration warning: Just five stocks drove 92% of returns in Q1

How long will growth burst last?

Spike Hughes takes a closer look at the dominant US equity themes of recent months and concerns for investors.

2015 so far has been challenging for active managers of US portfolios. The market has been misleading, rewarding things that simply do not make sense - a reminder of the dotcom era, perhaps? Last year, the US was highly polarised where, on the one hand defensive high-yielding equities were highly sought after, and equally 'go go growth' was dominant. For the majority of 2014, mega-cap defensives were expensive with stagnant earnings growth and falling free cashflows, while 'go go growth' stocks were on crazy valuations without strong fundamentals. It is folly to take a very short-t...