John Biccard, PM at Ninety One, was my special guest on the Investment Community podcast (part 2 of a 2-part conversation). You can listen to the conversation with John here.

In this episode (part 2 of 2):

  • John explains the cyclicality in the relationship between growth and value stocks, and explains how prospective returns have changed during the era of free money.
  • He discusses how the valuation gap between growth and value has contracted recently, but still remains very extended.
  • He believes that bond and equity markets are pricing in a 2% US inflation rate but if it’s higher, growth stocks will take a disproportionate share of the pain.