growth investing

Growth stocks have been on a rollercoaster ride — soaring during the pandemic, only to plunge as interest rates climbed.

We consider two prime examples of the growth stock phenomenon: Scottish Mortgage Investment Trust and Cathie Wood's ARKK.

We dig into the funds' investment philosophies, faltering performance, and whether they are set for a resurgence.

And in today’s Dumb Question of the Week: What is the difference between a closed and open-ended fund?

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Disclaimer

This podcast is for informational and entertainment purposes and is not financial advice. We do not provide recommendations or endorse any decision to buy, sell or hold any security. We cannot be held responsible for any actions listeners may take and investors are encouraged to seek independent financial advice.

Copyright 2023 Many Happy Returns

For a fund manager with a belief in value, 2021 was as discombobulating a year as they come, says Ben Inker, co-head of GMO’s asset allocation team. Valuations went to insane levels across all markets, and there was nothing you could buy or hold that was cheap enough to offer real long-term returns. But the good news according to Inker is that an awful lot of froth came out of the market last year. Prices went down and inflation went up. Add those together and a lot of markets were down 25% plus in real terms, he says.

Inker joins Merryn Somerset Webb on this week’s Merryn Talks Money  to explain that, for the first time in several years, it’s possible to find assets with “compelling valuations.” There could be more nastiness to come in the most expensive markets, he warns, but the opportunity set going into 2023 is far better than it was a year ago. 

Plus, John Stepek and Merryn discuss was she calls one of the best books she's ever read. 

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