The death of traditional media has been heralded ever since the advent of the internet and its ‘great giveaway' of information. But multi-managers are viewing media stocks as a savvy cyclical play in a world of expensive defensives.
Big media stocks have been riding high this year as companies have been able to find ways to generate paid-for content despite a weak economy. The Dow Jones US Media Index is up around 36% since the start of the year which, compared to the fortunes of the FTSE 100 (up 7%) and the S&P 500 (up 20%), suggests media stocks have performed well. Aviva Investors head of equities David Lis said valuations are beginning to appear attractive on the grounds many media outlets have more robust cash flows than the market perceives. “Reed, Daily Mail and General Trust, and United Business Media ...
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