Growth stocks favoured
The ASX 200 still remains a tale of two markets: very cheap stocks and very expensive stocks.
This is a throwback to the value-growth dispersion that flared up last year, and even though value stocks had a better month than growth stocks, the market still overwhelmingly favours growth stocks.
Financials (trading at 12.8 times forecast earnings) are cheaper than industrials (20.7 times) and resources (13.6 times), according to Morgan Stanley, which finds that at 15.5 times, the overall market’s multiple is stretched.
However, resources stocks are below their long-term average, but not by much, indicating a prudent lack of exuberance around the outlook for commodity prices.
Finally, the biggest source of dividend surprises was the consumer discretionary sector, according to Credit Suisse.
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