In the TV show “Location, Location, Location”, hosts Kirstie and Phil try to hunt out bargains for would-be house buyers. Were there to be an investment themed variant of the show, there’d be a case for ditching safer, more expensive assets and sectors in favour of the cheaper, less loved ones.
We subscribe to this view but think that the recent rotation clamour is over-done. Whilst there are better prospects of growth (and diminished risks of global recession), we believe the current rally is displaying signs of over-exuberance and there will be better buying opportunities and entry points in the future.
Read PSigma’s Rory McPherson’s latest blog here.