Growth / value
“ That dispersion of valuation tends to close from both directions . The expensive stocks become less expensive than they were and some value names get a re-rating , as long as the economy does not go into a significant recession ”
Neil Veitch Manager of the SVM World Equity fund
Sticky labels So are labels such as growth and value helpful for investors ? Veitch calls them “ another paradox ”, saying they shouldn ’ t be used as anything other than a mental shortcut :
“ Labelling a share as growth should give us an idea of how it might perform if interest rates rise . [ But ] both value and growth investors are looking for stocks cheap relative to the growth that is on offer .”
Issue 85 - June 2022 / 15 /