Miton's Jane: Are growth stocks overvalued?

'Growth versus value' debate

In all big stories, the reality is often more nuanced than headlines suggest and the 'growth versus value' debate is no different, writes David Jane, manager of Miton's multi-asset fund range.

It is true growth stocks have recently outperformed by a considerable degree and this had led to some comparison with the tech bubble in the late 1990s, as relative performance has reached these heights. Back then, the reason for growth's outperformance was a high level of speculation in a narrow area, which had little or no earnings. For its part, the recent outperformance of the so-called FAANG stocks does to some degree reflect a high level of revenue and earnings growth and, therefore, can be argued to be less speculative. Indeed, the FAANGs - in some cases at least - have stro...