Last week, I discussed why the typical classification system of dividing stocks into growth and value buckets was not sufficient for the current S&P 500 (SPY) environment. Instead, a more accurate system would be dividing stocks into 3 categories –growth, value, and reflation. The tricky part is that right now, reflation stocks have the most earnings growth. And, they have the cheapest valuations. This is certainly a unique development which is fitting given that we are living through a very unique period of time. In this week’s commentary, I want to discuss the changing fortunes of these various groups, when the market environment will get friendlier for small and mid caps stocks and some glimmers of optimism in the coronavirus situation. Read on below to find out more….(Please enjoy this updated version of my weekly commentary published September 13, 2021 from the POWR Growth newsletter).
First, a programming note:
Yes, this commentary is coming to you on Monday rather than on a Wednesday. The reason is that we are launching the POWR Stocks Under $10 service which I will also be leading and that commentary will be on Thursday. So this will give us some breathing room between the two especially as many of you will be subscribing to both.
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