Street Signals Growth Beyond the AI Trade: Where Next?
Nov 6, 2025
Marija Veitmane, Head of Equity Strategy at State Street Markets, shares valuable insights on global equity trends. She dissects the recent Q3 earnings and their implications for a potential Santa rally. Marija highlights the long decline of value investing and the need for skilled stock-pickers amid a preference for momentum strategies. She points out overlooked opportunities in European small caps and healthcare, arguing the sector could see renewed interest. Additionally, she analyzes the impact of tech earnings and AI on market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Value Has Fallen Out Of Favor
- Investors have largely abandoned traditional value over the past 20–25 years and hold much less value exposure now.
- That persistent divergence makes finding value increasingly difficult without skilled stock selection.
Don’t Rely On Passive Value Indices
- Avoid buying a plain value index if you can't do bottom-up selection because it mixes true value with many value traps.
- Do focus on skilled stock pickers to uncover the few attractive value opportunities.
Seek Marginal Alternatives To Tech
- Look for marginal, underowned areas rather than full diversification away from tech.
- European small caps, miners, and a re-opening China trade offer such marginal alternative exposures.