Baillie Gifford American good buy atm?

DennisTenus

Hi,

Given that Baillie Gifford American is down over 36% over last few months is it actually good value/good buy at the moment?

Thanks

masonic

The investment trust is up nearly 8% today, so it could be said it was a good buy yesterday, but who knows what will happen tomorrow.

Thrugelmir

Have you identified the reasons behind the fall?  Indepth discussion is best sought on one of the share boards. 

DennisTenus

Thrugelmir said:

Have you identified the reasons behind the fall?  Indepth discussion is best sought on one of the share boards. 

No, how do I do that? which boards do you mean?

[Deleted User]

Hi,

have a read through some of THESE threads.

bostonerimus

You ride the ups and downs with stock picker funds. Such funds often have confirmation bias as you only really hear about the winners and seldom the losers...apart from Woodford of course.

JohnWinder

Help me out here.

The hundreds of investors who traded in and out of that fund in recent days, and the thousands more who watched the prices and decided it was too high to buy or too low to sell for them, have resulted in the price it is now. Essentially, the market (made up of all those interested in that fund) has 'spoken' on what the value of the fund is; some thought it good value, some thought it bad, others thought it very good value and others thought it very bad -  all pushing the price to where it is now.

Can you explain how you can get useful information from a few dozen respondents to this forum on whether the fund is good value or not? Because you'll be sampling from all those in the market, and you might only elicit answers from those on one side of the 'value' spectrum. How can their responses be more informative than 'the market has spoken' on its value?

Prism

JohnWinder said:

Help me out here.

The hundreds of investors who traded in and out of that fund in recent days, and the thousands more who watched the prices and decided it was too high to buy or too low to sell for them, have resulted in the price it is now. Essentially, the market (made up of all those interested in that fund) has 'spoken' on what the value of the fund is; some thought it good value, some thought it bad, others thought it very good value and others thought it very bad -  all pushing the price to where it is now.

Can you explain how you can get useful information from a few dozen respondents to this forum on whether the fund is good value or not? Because you'll be sampling from all those in the market, and you might only elicit answers from those on one side of the 'value' spectrum. How can their responses be more informative than 'the market has spoken' on its value?

The investors in the fund have had almost no effect on the price of it, aside from likely forcing the fund managers to sell some equities to raise money to meet those cash redemptions. Its more like the world of investors have decided on the value of this fund. As to whether this style of long term growth investing is likely to do well over the coming years I am undecided, but if we believe in efficient market pricing then as good as everything else I guess. Certainly a better return than would have been had if investing a month ago.

Thrugelmir

JohnWinder said:

Help me out here.

The hundreds of investors who traded in and out of that fund in recent days, and the thousands more who watched the prices and decided it was too high to buy or too low to sell for them, have resulted in the price it is now. Essentially, the market (made up of all those interested in that fund) has 'spoken' on what the value of the fund is; some thought it good value, some thought it bad, others thought it very good value and others thought it very bad -  all pushing the price to where it is now.

The broader market will determine individual share price movements of the underlying portfolio not the investors in the fund. Baillie Gifford American is an OEIC not a closed ended investment vehicle such as an IT. 

Steve182

US market is viewed by many (actually most) as being over inflated ATM. If you concur that it's over inflated you would see it as quite a risk, perhaps a bubble about to burst. 

That said, I took the same view 12 months ago and sold out of a lot of my US investments, only to miss out on a circa 25% increase in the S & P in 2021.

Very hard to get the timing right!

Thrugelmir

Steve182 said:

That said I took that view 12 months ago and sold out of a lot of my US investments, only to miss out on a circa 25% increase in the S & P in 2021.

A greater return would have been achieved by buying dirty energy stocks,