Daniel Needham and Dan Kemp talk to Elliot Gulliver-Needham about why FAANGs are too expensive, the opportunities coming about of Beijing and Pretoria, and why they believe inflation is not necessarily a bad thing.
In the year to 17 November the MSCI USA index has returned 30% while the MSCI World has returned 25.7% and the MSCI World ex USA has returned just 18.14%, according to FE fundinfo. Yet, when asked which regions they see the most potential in, Morningstar CIO Dan Kemp tells Investment Week, "we are definitely underweight to the US". He says this is because of the high concentration of very expensive stocks. In the benchmark index, the S&P 500, the top five stocks now represent over 20% and are edging steadily towards making up 30% of the index. "That is a concentrated index, a...
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