Some investors are seeking safety in domestic US growth stocks
ranging from software and online advertising to aerospace and recruitment since President Donald Trump's May 5 tweets showed that US talks with China were in trouble.
Indeed, the first decade of the new century reversed the Dot Com trend and resulted in large-cap growth stocks
losing 4 percent annually over the ten-year period.
typically do poorly in situations of global growth decelerating," he said.
The risk in buying a given growth stock
is that its lofty price could fall sharply on any negative news about the company, particularly if earnings disappoint.
For his growth stock
, he invested in Universal Robina Corp.
are attractive because they offer a higher potential return, but the downside is they also offer more risk.
Prior to TIPRA, a common strategy was to invest in instruments that generate low (or no) income, such as growth stocks
or savings bonds.
I investigate the mean reversion tendency of small growth stocks
. Using a carefully articulated research design employing established and empirically tested principles, my findings should support or refute the anecdotal evidence that small growth stocks
make superior investments.
"Whether it's growth stocks
, value stocks, momentum stocks, stocks benefiting from emerging growth in China or our stock-of-the-month report, each product is represented with its own distinct marketing message.
Campbell, Polk, and Vuolteenaho show that growth stocks
' cash flows are particularly sensitive to temporary movements in aggregate stock prices (driven by movements in the equity risk premium), while value stocks' cash flow's are particularly sensitive to permanent movements in aggregate stock prices (driven by market-wide shocks to cash flows.) Thus the high betas of growth stocks
with the market's discount-rate shocks, and of value stocks with the market's cash-flow shocks, are determined by the cash flow fundamentals of growth and value companies.
Paper company stock prices lagged the Dow Jones average by wide margins, the industry failed to earn its cost of capital, and the industry practically vanished from Wall Street radar screens, replaced by exciting, dynamic growth stocks
in industries such as energy trading, telecommunications, and wireless.
Investment specialists typically advise those who are interested in capital gains and future growth of earnings to invest in growth stocks
rather than value stocks.