According to the latest data from Bank of AmericaMost Hedge Fund managers believe that the global stock market is currently overstated. And it’s been a long time since they felt it.

However, not all actions are the same, and immense parts of the market do not look high-priced at the moment. But the key to investors is knowledge where to look.

Crowded transactions

The current topic of the year’s investment was artificial intelligence (AI). The most obvious beneficiaries of this were a collection of stocks known as “wonderful seven”.

In the second quarter of this year, the magnificent seven together increased the profit of 26.6%. While the rest S&P 500 Managed profit augment by 7.4%.

This type of growth – especially in relation to the wider market – naturally attracts the attention of investors. But fund managers are starting to think that trade is becoming crowded.

When investors start doing the same, things can become risky. This can lead to a sudden reversal in a miniature period, but long -term problems should also be considered.

Warren Buffett

When it comes to searching for overlooked possibilities, Warren Buffett is one of the best in the industry. AND Berkshire Hathaway The general director has advice for investors who want to do the same: “The future is never clear-you will pay a very high price on the stock exchange for a joyful consensus. Uncertainty is a friend of the buyer of long-term values.”

In other words, investors looking for long -term phrases should be careful of crowded transactions. Instead, they should look for opportunities in places where others are less confident.

There are several of them who come to my mind. But when it comes to S&P 500, there is in particular one that is worth paying attention to at the moment.

Pharmaceuticals

Danaher (NYSE: DHR) Actions have dropped by 30% in the last 12 months. And the change in US administration in healthcare policy away from medicines is the risk that investors should take seriously.

As a result, sales have dropped, but the company begins to show signs of recovery. Profit for the action overtook expectations in both the first two quarters of this year.

Despite the complex environment, Danaher still has a robust competitive position, based on operational performance and clever acquisitions. And this is a promising long -term sign.

Source: Tradingview

At the moment, shares are commercial at an extremely low-cost level based on the price for the book (p/b). As a result, I think that it is worth considering a potential opportunity to buy.

Finding opportunities

I think there are always opportunities to buy somewhere on the stock exchange. But as Warren Buffett notes, they are usually not in places that everyone else is looking for.

The augment in artificial intelligence caused a real growth of companies known as Magnificent Seven. This trade, however, begins to look crowded and this is something that should be cautious.

On the other hand, in the healthcare space, the matter looks less positive. But when Danaher began to show positive signs after complex years, I think investors should look here.