The long and short of it The recent sell-off in growth stocks has largely been attributed to an increase in inflation and interest rate expectations . But rather than splitting the market into growth and value , Jacob de Tusch-Lec , manager of the
Artemis Global Income fund , prefers to think of it in terms of long and short duration stocks . “ Some growth stocks are very long duration , especially the ones that don ’ t have profits ,” he says . “ That ’ s fine if the real interest rate is zero and the discount rate is zero , because then $ 1 today is worth $ 1 in 10 years . “ But where is it going to end up ? If it ends at 3 to 5 %, that ’ s absolutely critical . You may think it doesn ’ t matter , but over a 10-year period ,
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