Explosive decompression

For five straight years, investors across the globe have been driven by a lust for yield. Stocks that pay out high levels of income have been pushed up. At the same time, investors’ ardour for growth has waned. The result: there is less of a difference in valuations between high growth and income stocks. In the UK, for example, the number of stocks trading within a 10% band of the median P/E is close to a 20-year high. But this trend appears to be cracking. Technology, the ultimate growth secto...