From free money to free fall – don’t lose sight of the long term
From the desk of James Abela
Portfolio Manager, Fidelity Future Leaders Fund
Well, what a difference six months can make. Throughout 2021 there were concerns building around valuations, the large swell of unintended consequences or distortions of near-free money that led to record loss-making companies in the Australian market. Not to mention record valuations for growth stocks, low pricing of risk, high levels of corporate activity and a sense that this couldn’t last.