To our friends in the growth camp Kailash suggests caution:
- The chart below shows the 3 year performance spreads between Growth and Value have reached levels last seen at the peak of the dot.com bubble
- Kailash has documented the precarious valuations of many popular growth firms in quick takes to a barrage of recent research
- With the chart rolling over hard, Growth Investors might be well served to begin exiting the most speculative of growth stocks
If the future rhymes with history we know the exits from such speculative extremes can become anything but orderly as the fallout from the prior peak saw growth decline 62%. For those interested in investing based on buying healthy companies with long histories of selling products at healthy profits please contact us here.
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