Looking Past Today’s Inflation Narrative...
While I cannot predict the future, I believe the next few weeks or months will be choppy for high-growth companies, and several will experience deeper drawdowns however in a couple of years they will not show up on the long-term charts. Many high-growth stocks may be two, three, or four times higher over the next five years.
Assuming that inflation is still present there are several things to like about high-growth companies. They have long runways, recurring revenues, and repeat purchases. Better yet, they have pricing power and high margins across their business. These high-growth businesses may have the potential to grow their revenues/ cash flows over time.
The views expressed are not necessarily the opinion of Cadaret Grant, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure a profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.