Partner Insight: Are equities really overvalued?

Value dispersion means there are plenty of cheap opportunities

Gareth Jones
clock • 1 min read
Ben Jones, Director of Macro Research at Invesco
Image:

Ben Jones, Director of Macro Research at Invesco

"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."

Enter your details below to read the full interview and learn more about valuation investing

More on Equities

Partner Insight: Are you prioritising fundamentals over election noise?

Partner Insight: Are you prioritising fundamentals over election noise?

With half the world facing elections this year, are investors being distracted by short-term noise and overlooking potential international opportunities?

Orbis Investments
clock 20 November 2024 • 5 min read
Partner Insight: Are global equity markets shifting in our favour?

Partner Insight: Are global equity markets shifting in our favour?

Orbis Investments
clock 30 October 2024 • 3 min read
Net gains: What a tennis great can tell us about equity investing

Net gains: What a tennis great can tell us about equity investing

'When you lose every second point you learn not to dwell on every shot'

Sheldon MacDonald
clock 16 September 2024 • 4 min read

In-depth

Analysis: Advice M&A continues apace as FCA review looms

Analysis: Advice M&A continues apace as FCA review looms

Firms taking very different approaches to buying and selling

Isabel Baxter
clock 18 November 2024 • 7 min read
Your Autumn Budget briefing: Tax and pensions changes Labour could have in store

Your Autumn Budget briefing: Tax and pensions changes Labour could have in store

Budget comes as prime minister says country 'embrace the harsh light of fiscal reality'

Jen Frost
clock 29 October 2024 • 22 min read
In view: Plotting PFS change

In view: Plotting PFS change

From first operating loss since 2008 to sponsorship, board and revenue changes

Jen Frost
clock 17 October 2024 • 6 min read