Growth stocks outperformed value stocks in the September quarter, but Boston money manager GMO is not backing away from its 'long value, short growth’ call, arguing the “extreme valuation dislocation” between the two investment styles will continue to unwind.
“We believe that value will outperform growth purely and simply because it is priced to do so,” GMO said. This faded somewhat last quarter as the pendulum swung back to growth stocks, returning negative 3.6 per cent to value’s 5.6 per cent loss as recession fears returned to the market amid a global wave of interest rate rises to tame high inflation.
“If any investors had lost their nerve during any one of these drawdowns, they would have also lost out on the trade of a lifetime.”
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Source: FinancialReview - 🏆 2. / 90 Read more »