HSBC GAM equities CIO: Value rally could run for two to three years

North Asia presents the most attractive opportunities

Bill Maldonado, global CIO of equities at HSBC Global Asset Management, has said the rotation into value stocks has "a lot further to run", highlighting the valuation gap between defensive and cyclical names has never been larger.

Maldonado (pictured) said defensives had been the ideal place for investors to hide during periods of minimum growth and austerity-driven policies.  However, the rotation back into value has given cyclicals a huge boost, with Maldonado suggesting this shift still has plenty of momentum behind it. Where next for the value comeback and how are you gaining exposure? He said: "As far back as we can measure, the discrepancy in valuations between defensives and value has never been larger. "Even in the mid-80s and early 90s, I cannot find a period when the gap was bigger, so although ...