While Australia’s tech darlings have achieved spectacular share price growth, the global tech behemoths continue to dominate markets. These ‘growth’ companies are trading on eye watering multiples in many cases, while less glamorous companies languish on valuations well below their long run averages. The divergence in valuation between growth and value stocks has not been this great since 1999.

So what is an investor to do? In this podcast Julian McCormack discusses:

• Why investors continue to buy growth, despite the decreasing likelihood their investment will pay off
• Historical comparisons when markets reached such a wide dispersion of valuations
• The concept of the ‘new normal’ in a world of zero interest rates
• A reality check for investors on the Nasdaq, which dropped 75% in 2000 and didn’t make a new high for 15 years, and
• Thoughts on how to seek out companies with a strong track record of delivering value.