The FTSE 100 has recently experienced a significant decline, falling 1.3% amid a global sell-off that has affected various sectors. This downturn is particularly concerning for investors in the Scottish Mortgage Investment Trust, which has seen its shares fluctuate dramatically over the past year. Harvey Jones, a financial analyst, has expressed concerns regarding the future of Scottish Mortgage shares, which rose 21.83% since his purchase in May and August 2022, culminating in an overall increase of 25.83% over the past 12 months. However, this performance is overshadowed by the trust's staggering drop of over 50% in 2022, which was worse than the Nasdaq's 28.39% decline [ff00fa6].
Scottish Mortgage's major holding in Nvidia has been a bright spot, with shares up nearly 200% over the same period. Yet, this is not enough to offset the underperformance compared to the S&P 500's 34.37% and Nasdaq's 45.07% gains. Longview Economics has warned of potential market setbacks, which adds to the uncertainty surrounding tech stocks and growth investments [ff00fa6].
In light of these developments, Jones is contemplating selling his shares due to their underperformance relative to the broader market trends. The ongoing volatility in the stock market, particularly in the tech sector, raises questions about the sustainability of growth stocks like those held by Scottish Mortgage, especially as the FTSE 100 continues to grapple with external pressures [62b4eef5].