A perfect example of growth stocks experiencing pain during a ”Taper Tantrum” unfolded back in 2018 when the likes of CSL Ltd (CSL) and Cochlear (COH) were flying high and the pick of the bunch in many fund managers portfolios but things can & do change very quickly:
- In 2018 the market became spooked that the Fed et al were going to reduce stimulus faster than previously expected.
- CSL and COH tumbled 25% and 30% respectively whereas the broad market only declined 15%.
At this stage the main point to consider is MM remains bullish equities because unlike 2018 tapering is fully anticipated the actions of central banks are likely to create headwinds to the growth, high valuation names.
MM is still bullish CSL into 2022
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