Recession in 2026? Here’s a 9% Payer to Profit

Core Viewpoint - The article discusses the investment potential of the Liberty All-Star Growth Fund (ASG), highlighting its current discount to net asset value (NAV) and the strong performance of its underlying portfolio, suggesting it is a compelling buy opportunity in the current market environment [1]. Group 1: Market Performance and Economic Indicators - The S&P 500 is expected to yield around 12% returns in 2026, with a notable 13.4% return over the past 12 months, outperforming its long-term average of 10.6% [1]. - The US GDP rose by 4.4% in the third quarter, with projections indicating over 5% growth for Q4, significantly above the average annual growth rate of 3% [1]. - The influence of AI on productivity is noted as a contributing factor to the market's performance, suggesting that the current market conditions do not support the notion of a bubble [1]. Group 2: Liberty All-Star Growth Fund (ASG) Analysis - ASG is currently trading at a 9.8% discount to its NAV, which is the largest discount in three years, making it an attractive investment opportunity [1]. - The fund's NAV has appreciated by 11.5% annually over the past decade, indicating strong long-term performance [1]. - ASG's management aims to pay dividends based on NAV, targeting an annual payout of 8% of NAV, which has remained stable due to the fund's strong performance [1]. Group 3: Investment Strategy and Outlook - The article suggests that the persistent strong gains in ASG's NAV over the last three years, which totaled about 12%, indicate that the current discount is likely to narrow, presenting a buying opportunity [1]. - The fund's portfolio includes high-quality US blue chips such as NVIDIA, Microsoft, and Apple, as well as midcap stocks, enhancing its attractiveness [1]. - The article emphasizes that the current market conditions and ASG's performance metrics suggest a favorable environment for investment in the fund [1].