The anchor stocks driving the performance of global equities will widen in 2021, as higher bond yields prompt investors to question the valuations of the technology mega caps in favour of companies more exposed to the economic rebound.

Tesla, Apple, Microsoft and Amazon had an outsized influence on the global equity market in 2020, contributing 46 per cent of the total return on the MSCI World Index.

“These four stocks accounted for almost half the return of the MSCI World Index which is really remarkable because it has about 1600 stocks in it,” said John Tobin, Epoch Investment Partners portfolio manager.

“They were the stocks driving the market last year.”

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