Relative valuations between equity styles are also being impacted by disruption, pushing valuations for the winners and the losers in sharply opposite directions.
Although many investors equate disruption with the major technology platform companies, the effects also are being felt in a host of other sectors and industries, Giroux says. Energy markets, for example, are being disrupted by the crosscurrents of shale fracking and the increased competitiveness of solar and wind.
“Our work suggests that about 31% of S&P 500 market capitalization—and up to 35% of S&P revenue—is being impacted by some level of secular challenge,” Giroux says.