The U.S. economy is growing, but just barely. What does that mean for growth investing? I sat down with Senior Portfolio Manager Tom Ognar, CFA, with Wells Capital Management's Heritage Growth team to gather his insight. What follows is an excerpt of our interview for the investment news podcast On the Trading DeskSM from Friday, October 4, 2013. Watch my full video interview.
Tom, does a slow-growing economy mean slow growth for businesses?
Yeah, it's an interesting, I would say, misperception in the marketplace. One thing that actually benefits the growth stock sector is a slower economic environment. Because growth becomes more scarce, investors, historically, are willing to reward those companies—companies with higher valuations—that can find growth because growth isn't plentiful in the marketplace.
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