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Is It Time To Buy High-Growth Stocks?

Daniel Laboe
·2 min read

The interest rate sensitivity of high-growth stocks has caused their rich 2021 valuations to capitulate as yields soar. The Ark Innovation ETF ARKK, the innovation benchmark, has tumbled -33% year-to-date, -60% off its February 2021 highs.

Has fear and momentum trading caused the stock market to overdo this high-growth correction?

The answer lies with your outlook on the Fed’s monetary approach to inflation and sustained demand.

Fed Chair Powell has done a phenomenal job navigating these uncharted economic waters, and I believe his perception of natural inflation deceleration is valid. Powell and his regime of accommodative central bankers are doing everything in their power to keep the US economy growing.

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Outsized demand is what is causing this inflationary environment, and analyst beating results & forward guidance from Apple AAPL & Microsoft MSFT just showed that our appetite for the hottest tech might be insatiable.

Well-positioned tech is looking at accelerated secular growth over the next decade as society transitions in the 4th Industrial Revolution.

It’s impossible to call a market bottom, but with the S&P 500 teetering around correction territory (-10% off recent highs), it’s time to start adding to your portfolio for the future.

Stocks I’m Adding To Today: CrowdStrike CRWD, Twilio TWLO, TSMC TSM, Alaskan Air ALK, ACM Research ACMR, & Splunk SPLK.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
ACM Research, Inc. (ACMR) : Free Stock Analysis Report
 
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
 
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
 
Splunk Inc. (SPLK) : Free Stock Analysis Report
 
Twilio Inc. (TWLO) : Free Stock Analysis Report
 
ARK Innovation ETF (ARKK): ETF Research Reports
 
CrowdStrike (CRWD) : Free Stock Analysis Report
 
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Zacks Investment Research