To The Moon

Follow the crowd or go for growth?

Its the same story again it seems. Looks like growth stocks cannot catch a break. Even though market indices were flat across the board, when we take a closer look at the stock components, we see an obvious pattern.

Growth stocks took a hit and underperformed. Having higher beta and greater volatility, they tend to have more protracted moves and might not be for all investors especially risk averse ones. But then again, these are the future 'FAANG's and if we do our research correctly, it might give handsome rewards.

The Fed were again on their hawkish crusade and a Fed official even suggested that a 75pts raise might be possible. Bonds sold off and yields were up so not surprisingly, growth took it ok the chin.

It always pays off to pick up stocks when theyare underappreciated and I always like a contrarian approach. As I mentioned in another article, I am pivoting more towards growth and yet another stock that I am watching is $Sea Ltd(SE)$ .

Let me share my simple chart. The monthly chart paints a clear picture. We see the long term trend that the stock broke out of at the start of the pandemic to go on its exponential runto above 300 dollars before crashing back to the 100 dollar level it is at now. This falls withinthe original long term trendline which seems to indicate a more reasonable price.

Only time will tell if it might test recent lows before reversing course but the price does seem enticing.

Stay safe! 😊