"A lot of people look at value at the moment and say equities are expensive. But actually, I don't think that is universally true."
That's according to Ben Jones, Director of Macro Research at Invesco, who says there are opportunities to be had for valuation investors, despite perceptions about prices.
"If you look at valuation metrics across regions, across sectors, and certainly across different stocks, there's quite a wide dispersion. Which tells me that, yes, there is a bunch of very expensive stuff out there, but there is also a lot of quite cheap stuff. "It's this value dispersion which provides strong investment opportunities for valuation-based, active investors."
Balance sheet resilience
Ben says valuation investors can also take heart from the underlying financial strength of many stocks.
"There are companies out there that have exceptionally strong balance sheets today," he says. "In fact, some are in a net cash position such that when interest rates go up, their income goes up as well. And that's quite unusual historically in a rate hiking environment."
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