In this episode, Andrew Chiguri and John Bennett, Portfolio Manager of Henderson European Focus Trust, discuss global stock market valuations, areas where valuations are looking stretched and sectors where he is finding opportunities. John also touches on what could derail the strong performance we have seen from growth stocks in 2022.

Key takeaways

  • Certain segments of the equity market are looking ‘bubblelicious’, despite higher inflation, global supply chain bottlenecks, and tightening monetary policy concerns.
  • In Europe, valuations within technology and health care-tech (equipment) names are looking very stretched. From a sector perspective, valuations within small-cap and mid-cap growth names also look very high.

If 10-year yields were to steepen meaningfully on the back of higher inflation concerns; this would pose a significant risk to the performance of growth stocks.

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