June 2024 / EQUITY
Two Questions on U.S. Equities with…Julian Cook
Portfolio Specialist Julian Cook discusses his outlook and expectations for U.S. growth companies
Video Transcript
Concentration and dispersion in the market is actually, you know, pretty intense.
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.
So, seeing that differentiation come through in Mag 7 is also very healthy.
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.
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.
Having said that, we're finding really interesting ideas in fintech, particularly those payment companies where you see this move from cash into online.
In health care, we really like orthopaedics, robotic surgery, your GLP-1s.
So, we find that area very interesting.
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.
