Hey catsunited, I noticed these comments you made…
“Hypergrowth valuation is VERY vulnerable to interest rates - this is not a myth. It’s a correlation that has stood the test of time in multiple cycles…Have a look at the chart (link below) for 10 year treasury yield and 10 year TIPS (real) yield and you can see how even very SLIGHT increases in rates (in March 2021 and currently) cause hypergrowth stocks to suffer a heart attack.”
…so I thought I would heed your advice and look into this.
I started by taking a quick look at the first US10Y chart you posted, and I noticed a rise in rates from July 30 (1.23%) to October 29th (1.56%). I assumed based on your statement that Saul’s returns would have suffered during this period, so I looked at his latest monthly review, and was surprised to see his returns actually increased during this period of rising rates. Pretty materially in fact, as his YTD returns grew from +21.9% at the end of July, to +82.8% at the end of October.
Perhaps it was different this time?