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Growth Stock Unwind Severs Link Between Balance Sheets And ‘Quality’
You've heard it time and again by now: Year after year of outperformance and market leadership lulled investors into a false sense of security vis-à-vis US growth stocks.
Importantly (and I can't emphasize this enough), it's not just that market participants came to view mega-cap tech shares as "safe" in the kind of general sense that the large, blue chip companies which permeate our daily lives are typically good investments. Rather, an overlapping set of self-feeing dynamics created a scenar
Thank you. For me it seems the only way to avoid some of the growth names is to have a dividends specific ETF. I was feeling comfortable with some of the bigger growth names that sit on cash but as I looked around I saw they were in almost every fund you could possibly think to buy. Avoiding Tesla is not that hard to do fund wise, as I believe Eeyore will eventually make enough of an ass of himself to Tank that overvalued stock .
I’ve sold most of my SPY and replaced it with SPYD …… for the reason stated above.
H-Man, it would seem earnings may be a better benchmark to judge equities with an understanding that some sectors margins are being squeezed. That being said, there are a pile of companies that have no earnings and have been living off easy money. Those days are gone and those companies will be the first to crumble.