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​Video: Will Growth Make a Comeback?

Brad Neuman's Photo

Brad Neuman, CFA;

Senior Vice President
Director of Market Strategy

Alger Director of Market Strategy, Brad Neuman, CFA, discusses the reemergence of growth as the market begins to look beyond rising interest rates.

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In this video, Alger Director of Market Strategy, Brad Neuman, CFA, discusses the reemergence of growth as the market begins to look beyond rising interest rates.

BRAD NEUMAN: ​​​So, to answer that question, I think you have to go to our view about what is causing the market to be volatile and what is weighing on the market. So, we think the first part of the market headwinds was due to interest rates going up and long duration equities moving down. So, just like a long-term bond goes down more with a given interest rate than a short-term bond would move, so to do long term, long duration equities. So, growth has underperformed a​s interest rates have gone up. Now, that’s been a valuation reset. We think that part is largely over. We think long-term interest rates have probably peaked for this cycle because we’re getting close to the end of the Fed tightening, and long-term interest rates typically peak a few months before the Fed’s last tightening, last hike. 

So, now we’re left with the second phase of market headwinds. And in that phase, we think it’s more about earnings, downward earnings revisions as the economy continues to decelerate. And in that period, we think growth will outperform because we think growth’s fundamentals are much more resilient. So growth underperformed in the first phase because the valuations were susceptible to higher interest rates. Growth will outperform, in our view, in the second phase because the fundamentals are more resilient. And we think that second phase is upon us now. And so, we think growth should begin to outperform any time now.

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The views expressed are the views of Fred Alger Management, LLC (FAM) and its affiliates as of March 2023. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Holdings and sector allocations are subject to change. 

Important Information for US Investors: This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund and ETF shares. Fred Alger & Company, LLC serves as distributor of the Alger mutual funds.

Important Information for UK and EU Investors: This material is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations). It is for information purposes only and has been prepared and is made available for the benefit investors. This material does not constitute an offer or solicitation to any person in any jurisdiction in which it is not authorised or permitted, or to anyone who would be an unlawful recipient, and is only intended for use by original recipients an​​d addressees. The original recipient is solely responsible for any actions in further distributing this material and should be satisfied in doing so that there is no breach of local legislation or regulation.

Certain products may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to such persons or countries.

Alger Management, Ltd. (company house number 8634056, domiciled at 78 Brook Street, London W1K 5EF, UK) is authorised and regulated by the Financial Conduct Authority, for the distribution of regulated financial products and services. FAM and/or Weatherbie Capital, LLC, U.S. registered investment advisors, serve as sub-portfolio manager to financial products distributed by Alger Management, Ltd.

Alger Group Holdings, LLC (parent company of FAM and Alger Management, Ltd.), FAM, and Fred Alger & Company, LLC are not an authorized persons for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”) and this material has not been approved by an authorized person for the purposes of Section 21(2)(b) of the FSMA.

Important information for Investors in Israel: This material is provided in Israel only to investors of the type listed in the first schedule of the Securities Law, 1968 (the "Securities Law") and the Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law, 1995. The Fund units will not be sold to investors who are not of the type listed in the first schedule of the Securities Law.

Risk Disclosures:  Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. Past performance is not indicative of future performance.

Fred Alger & Company, LLC 100 Pearl Street, New York, NY 10004 / 800.305.8547 / www.alger.com


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This ETF is different from traditional ETFs.

Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. Specifically:

You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.

The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.

These additional risks may be even greater in bad or uncertain market conditions.

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF confidential, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. For additional information regarding the unique attributes and risks of this ETF, please refer to the prospectus.

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