When will the underperformance of ‘emerging growth’ as an investment style end? - Artemis Investment Management

It is impossible to predict when the underperformance of ‘emerging growth’ as an investment style will end. But as Neil Goddin explains, it is clear this group of stocks is no longer expensive – and the long-term case for investing in innovative growth stocks is undimmed.

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... For now, growth stocks, ESG stocks and positive-impact stocks are out of fashion. On a price-to-sales basis, emerging growth stocks are trading below their long-term average. Innovative growth companies that can solve meaningful problems tend to create significant value for their shareholders over time.

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