News

The article “Growth stock stars of the pandemic take a tumble” (Report, April 30) gives an interesting perspective on the volatility underpinning growth stocks.

It’s true that the S&P 500 growth index is down 20 per cent or more on a year-to-date basis.

This also accompanies falling gains for speculative stocks with little earnings records that were famous during the height of the pandemic.

Given that growth stocks may be uncertain in the near-term, investors can try their hand on small cap value stocks or exchange traded funds.

The latter group is priced at the bottom of its 15-year valuation, is less exposed to volatile sectors and offers gains to get returns in the medium to long-term. But given we are living in an extremely volatile world, any investment requires continuous monitoring.

Tejas Chivukula Bhavani
Singapore

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