Today is a monster “UP day” so far for most of the stocks that have sold off the hardest this year. In particular, we’ve seen high-revenue-growth companies with very weak earnings gaining 8%, 9%, and 10%+ today alone. What’s more incredible, if the rebound continues (which it will—eventually) these will be the types of stocks to gain the most.
In particular, many of the stocks soaring higher today have little or negative earnings now (see net margin column above) but that is only because they are spending heavily on growth to generate powerful earnings in the future.
Lots of investors fearfully sold these stocks on the way down, and will subsequently miss out on the huge rebound (whenever it arrives in full force, today, next month, next year). We’ve stayed disciplined and goal-focused, and our Disciplined Growth portfolio is putting up monster gains so far today. We believe it will continue to do so in the long term.
It’s the investors that can handle the big sell offs and volatility (like this year) that can afford to invest in long-term growth.
Every investor needs to understand their own personal investment goals, and they stay disciplined and focused on the right strategy to achieve them.