Quality growth stocks, those with fortress balance sheets, impressive moats, structural tailwinds and top-notch management teams, have had a stellar run recently. Take Goodman Group (ASX: GMG) for example, which has risen 66% over the past year. Or Megaport (ASX: MP1), up over 252% in 12 months alone.
If you're like this anonymous writer, you've probably started to ponder whether it's time to trim some of your winning positions and take some profits.
And according to TMS Capital's Ben Clark, we may have just reached that point.
"A lot of investors are trying to chase a very small number of stocks in Australia because of the AI trade," he says. "And I'd just be a bit wary about that because although those companies absolutely should benefit, it's just how quickly those benefits flow through and whether the market has just got a bit ahead of itself in terms of the benefits that will come through in the medium term."In this episode of The Rules of Investing, Clark sits down with Livewire's Ally Selby for a conversation on all things artificial intelligence, growth investing and holy grail stocks.
He shares where he is putting some of the firm's dry powder to work, a few reasons why investors should feel optimistic about the outlook for markets, and whether he would be buying the AI behemoths both globally and locally today despite their stellar runs over the last six months.
Plus, Clark shares why the tables may be turning once again for out-of-love growth darling CSL (ASX: CSL).
Note: This episode was recorded on Tuesday 9 April 2024.
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