Investment Community #18

John Biccard, PM at Ninety One, was my special guest on the Investment Community podcast.

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.

John Biccard is a portfolio manager at Ninety One, where he has responsibility for the firm’s Value Equity Strategy. He began his investment career in 1990 as an analyst at Simpson McKie Stockbrokers (which is now HSBC Securities), and later became head of financial and industrial research, as well as a director of the company. John then spent two years at HSBC Asset Management as a director of institutional asset management before he joined Ninety One (then Investec Asset Management) in 2000.

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