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May 12, 2023

Is now the time to buy Scottish Mortgage Trust (SMT) shares?

Scottish Mortgage Trust (SMT) is a popular investment trust that has been making waves in the stock market for quite some time now. With a strong track record of delivering impressive returns to its investors, many are wondering if now is the right time to buy SMT shares. Before we delve into whether or not SMT is a good investment opportunity, let's first take a closer look at what the trust is all about. SMT is a global investment trust that invests in a diversified portfolio of companies across various sectors and geographies. The trust is managed by Baillie Gifford, a well-respected investment management firm that has been around for over a century. One of the key reasons why SMT has been so successful is because of its focus on investing in high-growth companies that have the potential to disrupt their respective industries. The trust has a long-term investment horizon and is not afraid to take on risk in pursuit of higher returns. So, is now the time to buy SMT shares? The answer to that question depends on a number of factors. Firstly, it's important to consider the current state of the stock market. With the ongoing COVID-19 pandemic and economic uncertainty, many investors are understandably cautious about investing in the stock market. However, it's worth noting that SMT has a strong track record of weathering market downturns and delivering solid returns over the long term. In fact, the trust's net asset value (NAV) has increased by over 500% over the past decade, which is an impressive feat. Another factor to consider is the current valuation of SMT shares. As of writing, the trust's shares are trading at a premium to its NAV, which means that investors are paying more for the shares than the underlying assets are worth. While this may be a concern for some investors, it's worth noting that SMT has historically traded at a premium and has still delivered strong returns. Ultimately, whether or not to invest in SMT shares is a personal decision that should be based on your own investment goals and risk tolerance. If you're looking for a long-term investment opportunity with the potential for high returns, SMT may be worth considering. However, it's important to do your own research and consult with a financial advisor before making any investment decisions.