Cornelian's Kilpatrick: Investors have it wrong, the US is not overvalued

Contrary to the concerns of some investors, US equities are not overvalued, says Hector Kilpatrick, from Cornelian Asset Management

Indeed, there is a good case to suggest that considerable further upside is available to equity investors in the region. The perspective that US equities are overvalued - particularly relative to other regions - is regularly aired in the press, however once sector weights are taken into account, the so-called overvaluation is reduced. Tech bias A major reason for this is that the higher-rated technology sector accounts for around 17% of the S&P 500 index, while indices such as the FTSE All-Share and the MSCI Euro have technology sector weights of just 1% and 4% respectively (source...