Few of us would’ve predicted that by June the S&P would not only be positive, but up over 11%. On face value, a healthy market.

But dig a little deeper, and it quickly becomes apparent that this performance has been carried by the big mega-cap tech stocks. Such is their performance, and the lack of performance by the rest of the index, that Apple, Microsoft, Alphabet and Nvidia now account for a third of the S&P500.

This all begs the question: what next?

Do these mega cap stocks sell off, does the rest of the market trade up, or will it be a bit of both?

If it’s the former, which companies will take the reigns?

These questions, and more, are answered by today’s guest – Jacob Mitchell, founder, CIO and lead Portfolio Manager at Antipodes Partners. Antipodes houses two global funds, an emerging markets fund, and an actively traded global shares ETF (ASX: AGX1).

Before starting Antipodes, Jacob spent 14 years at Platinum Asset Management, where, as the co-CIO and lead portfolio manager of the Platinum International Fund, he oversaw $3.5 billion in assets under management.

Jacob goes to town on a lot of subjects, including:

his bear case for consumer-facing mega cap tech;
whether the AI boom is in fact a bubble;
where he’s seeing low multiples despite strong earnings growth; and
the stocks that will lead the the next cycle.

Note: This episode was recorded on Wednesday, June 5 2023

Timestamps

2:30 - Megacaps have dominated. What's next?

5:30 - Is AI a bubble?

9:10 - Slowing in the West, reopening in the East

12:00 - Market valuations and fundamentals don't line up

15:30 - Eyes on smaller companies bridging the gap

20:10 - Primed sectors

22:50 - Holding the line

27:20 - Liquidity is draining

30:20 - The secular winners of tomorrow

34:45 - Retail investors are sceptical of the energy transition

41:00 - Investment case for fossil fuels

44:00 - Hedging risk in today's market

48:00 - High conviction stocks

8 mega cap stocks have carried markets in 2023. Here’s what comes next

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8 mega cap stocks have carried markets in 2023. Here’s what comes next