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.
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
.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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