SINGAPORE (Sept 9): The tables appear to be turning for US equities.

After trailing defensive sectors in 1H2016, growth and cyclical sectors in the Standard & Poor’s (S&P) 500 outperformed strongly in July and August. In this period, utilities and telecoms retreated over 5%, while technology and financials gained 9.8% and 7.1% respectively as at Aug 31.

This is leading investors to scrutinise multiples being paid for future earnings growth rather than dividend yields alone.

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