Offshore investing - The magnificent middle

The so-called “magnificent seven” have dominated global headlines and returns this year. Take them out of the equation, and the rest of the market is slightly negative. Whenever a small group of stocks becomes this dominant, the likelihood is high that opportunities are being overlooked elsewhere. John Christy, a member of the team of Investment Counsellors at our offshore partner, Orbis, discusses the compelling investment opportunities currently held in the neglected mid-cap space.

A mere seven stocks have accounted for nearly all of the gains in global equity markets this year. Strip out the so-called “magnificent seven”—Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla—and the rest of the US stockmarket has been slightly negative. Times like these can be frustrating for those underweight the big winners, and it is all the more painful when those winners seem “obvious”—sitting right there in plain sight.

This is a common pattern that has repeated throughout history. An earlier iteration of the magnificent seven was the “FANG” stocks—

Read full article on https://www.allangray.co.za/latest-insights/offshore-investing/the-magnificent-middle/

November 15 2023 By John Christy - Allan Gray