“Midcaps are the most expensive of the pack, trading at 1.5x of that, and small caps are trading at 1x standard deviation. This means there is limited headroom for mid and small caps. It’s prudent to stay invested in large caps when valuations are stretched, and markets are volatile. Adding to this, the uncertainty of sticky inflation (partly due to El Nino) and the subsequent hawkish tone from Central Banks have resulted in increased market volatility.”
