Portfolio manager highlights undervalued financial and healthcare sectors as mega-cap stocks dominate AI-driven rallies.
Janus Henderson portfolio manager Jeremiah Buckley is advising investors to diversify beyond mega-cap stocks, citing attractive valuations in financial services and healthcare. These sectors have underperformed in the recent AI-driven market rally, presenting potential opportunities for earnings growth.
Mega-cap stocks, particularly in technology, have led market gains, while financials and healthcare lagged. Current interest rates remain manageable, but a 10-year Treasury yield near 5% could pose risks, requiring close monitoring of inflation and wage data.
The anticipated SpaceX IPO is expected to boost market sentiment and benefit capital markets firms like Goldman Sachs and Morgan Stanley.