Allan Gray’s high-profile investment chief, Simon Mawhinney, has pulled money away from what he says are overhyped ASX stocks, warning that investors who are chasing huge returns from the technology sector face an imminent reckoning.
The contrarian investor, who runs Allan Gray’s $2.5 billion Australian Equity Fund, noted that share prices have continued to climb despite corporate profits lagging. This has left the Australian sharemarket trading at an eye-watering 21 times next year’s earnings.
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