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Talking Heads – Watch out, concentration risk ahead

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Manage episode 465062747 series 1271630
Content provided by BNP Paribas Asset Management. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BNP Paribas Asset Management or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

Recent stock market movements have focused attention on the risks of over allocating to an equity index dominated a small group of companies in the same sector. This is currently the case with the preponderance of 10 (tech) behemoths in the US S&P500. Raul Leote de Carvalho, Deputy Head of the Quant Research Group, and Chief Market Strategist Daniel Morris put this concentration into context. They conclude that as long as market valuations rise in synch with profitability, the companies’ index dominance can be justified, but there's no margin for error. Raul suggests two ways of managing the related risk of high volatility.

For more insights, visit Viewpoint: https://viewpoint.bnpparibas-am.com/

Download the Viewpoint app: https://onelink.to/tpxq34

Follow us on LinkedIn: https://bnpp.lk/am


Hosted by Ausha. See ausha.co/privacy-policy for more information.

  continue reading

314 episodes

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iconShare
 
Manage episode 465062747 series 1271630
Content provided by BNP Paribas Asset Management. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by BNP Paribas Asset Management or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

Recent stock market movements have focused attention on the risks of over allocating to an equity index dominated a small group of companies in the same sector. This is currently the case with the preponderance of 10 (tech) behemoths in the US S&P500. Raul Leote de Carvalho, Deputy Head of the Quant Research Group, and Chief Market Strategist Daniel Morris put this concentration into context. They conclude that as long as market valuations rise in synch with profitability, the companies’ index dominance can be justified, but there's no margin for error. Raul suggests two ways of managing the related risk of high volatility.

For more insights, visit Viewpoint: https://viewpoint.bnpparibas-am.com/

Download the Viewpoint app: https://onelink.to/tpxq34

Follow us on LinkedIn: https://bnpp.lk/am


Hosted by Ausha. See ausha.co/privacy-policy for more information.

  continue reading

314 episodes

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