July 2024 / VIDEO
Two questions on US equities with…Julian Cook
Portfolio Specialist Julian Cook discusses his outlook and expectations for US growth companies
Transcript
0:13
Concentration and dispersion in the market is actually, you know, pretty intense.
0:17
You look at the performance in the first quarter: About 70% of the performance of the growth benchmark was down to four stocks. In terms of dispersion, within the Mag 71, there's some really high-flyers: the top performer, NVIDIA, up over 80%; Tesla down over 302.
0:33
So, seeing that differentiation come through in Mag 7 is also very healthy.
0:40
I think that, coupled with earnings expectations in the S&P broadening out to other areas of the market, gives us a fair chance that we should see some broadening out as you look forward from here.
0:55
To put it into perspective, 2023 was a huge year in U.S. growth, and it's getting more difficult to find idiosyncratic ideas that you can really have conviction in.
1:06
Having said that, we're finding really interesting ideas in fintech, particularly those payment companies where you see this move from cash into online.
1:13
In health care, we really like orthopaedics, robotic surgery, your GLP-1s.
1:21
So, we find that area very interesting.
1:23
And then finally, even in energy, we're finding an increased investment in offshore drilling, which we think will bode really, really well for those companies that service that industry.
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Julian Cook is a portfolio specialist in the Equity Division. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
