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Institutional Investors Grow Wary as Valuations Surge Across Markets

Major investment managers are expressing concern about stretched valuations as stock market momentum accelerates, particularly among technology-heavy portfolios. Canada Pension Plan Investment Board's leadership flagged discomfort with current price levels, while peers are adjusting strategies to capitalize on shifting opportunities.

M&G Investment Management is trimming positions in richly valued tech stocks and rotating toward undervalued securities. JPMorgan Asset Management notes that global equity returns are expanding beyond concentrated technology exposure, suggesting broader market participation.

Investment strategists caution against chasing rapid gains, recommending disciplined position management when securities exhibit parabolic price movements. The divergence in strategy reflects debate over whether current valuations reflect underlying business performance or momentum-driven enthusiasm. Market participants increasingly acknowledge elevated risk in concentrated portfolios.