AXA Rosenberg’s Will Jump outlines opportunities in US equities
Will Jump, Americas CIO at AXA Rosenberg, sees factors such as continued growth in US corporate earnings spurring stockpicking opportunities in US equities.
Encouraging macroeconomic projections for US and global economic growth indicate a high probability of US corporate expansion that should help underpin equity prices following the end of quantitative easing in the United States.
Amid a liquidity-fuelled rally and passive equity fund flows, the valuation gap between a company’s fundamentals and its stock price remains wide. As a consequence, the number of opportunities available to fundamentally-driven investors is higher than in the past.
Despite the recent gains seen in US equities, we believe that valuation levels remain compelling. We believe valuation matters in US equities and that there are currently opportunities to capture attractively priced fundamentals. The expansion phase of the cycle has historically been favourable for valuation focused investing. Valuation spreads, the difference between cheap and expensive stocks, identified by AXA Rosenberg’s stock selection model for US equities appear attractive for fundamentally-focused investors.