RE: Anyone Taking Advantage?23 May 2023 12:38
I started a significant position here last week. I have been tracking SMT for years and am still sceptical about the current valuations of the likes of Tesla, Moderna and Nvidia. However, US (unprofitable) growth stocks are starting to rise which I presume is down to US inflation considered to be under control and US interest rates to therefore follow down eventually. Since the market is forward looking, growth will swing back before any rates cuts take place.
The SMT discount offers an enormous cushion and unlike private equity funds I do expect it to close as SMT finds favour once again . I have also started a position in USA with a similar discount.
We'll see. I have previously been burned on some individual growth stocks, particularly fintech, so prefer funds going forward.