Time To Buy Growth Stocks?

A good strategy coming out of a crash is to buy the sectors and factors that have fallen most going into the crash, and in 2022 that has been growth stocks. In this video, I look at the different definitions of growth as a factor as it turns out that this is really important. I also discuss whether now is a good time to buy growth funds and look at their long-term performance.
If you want to become a better investor then why not become a pensioncraft.com member? To find what we offer and how you can join our friendly community click here www.pensioncraft.com/investor...
This Is What Else PensionCraft Offers:
💡 Book a coaching session with Ramin so he can answer your questions in a one-to-one video call via Zoom: pensioncraft.com/power-hour/
📰 Sign up to our free weekly market roundup to get news and views about what's going on in the stock market and wider economy pensioncraft.com/market-roundup/
📖 Understand investment in more depth with my online courses pensioncraft.com/courses-we-o...
❓ Join PensionCraft on KZbin and you’ll be supporting me to make more content and I will answer your questions and respond to your comments on KZbin as a priority kzbin.info...
Where Else You Can Find Me
🎧You can check out my weekly podcast all about investing here many-happy-returns.captivate....
🌐 Website - pensioncraft.com/
📱 Twitter - / pensioncraft
👨 Facebook - / pensioncraft
🔗 Linkedin - / pensioncraft
Tools I Use To Create My Videos
✔️ My primary data source is SharePad and an affiliate link for this is here sharescope.co.uk/pensioncraftsp (This link provides new users with a special offer and gives me a small commission)
The rest of the tools I use are free open source software:
✔️ ggplot2 package in R for my plots
✔️ RStudio to edit and run R code
✔️ OBS to record my videos and live streams
✔️ Kdenlive to edit my videos
Take A Look At Some Of My Other Videos & Playlists
📹 Investment Strategies playlist • Investment Strategies
📹 Economy & Investing playlist • Economy And Investing
📹 Behavioural Investing playlist • Behavioural Investment
📹 Investing Strategies From Beginners To Advanced video • Investing Strategies F...
DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
#GrowthStocks #Investing #PensionCraft

[@taylorcoggan2054]

This hands down is the best channel. Straight to the point and click baits. One of the few guy on KZbin that actually has qualifications to give his advice. Not a gas station manager turned into a KZbinr

[@Thedrifter1]

@@lylahthompson2169 There's a lot of people that will throw $25k into the Forex market, which is highly being watched right now as the dollar is hurting all currencies inside the SDR basket. A weaker dollar needs to come and will come at some point. Be careful if you do decide to play in the forex market, there is a lot to this market and it is CFD. Investing is nearly always safer than trading but understanding how to do both lets you play in the market 24/7.

[@Paulie44]

Yawn 🥱 Scam 💩🚽

[@HonestSonics]

@@richardsoncuthel810 therrre it is, hahaha

[@mmabagain]

@@lylahthompson2169 That's called market timing. Usually not a good strategy.

[@peterwaters126]

I work in the financial markets and can see you are knowledgeable. You also take a very considered and moderate approach to investing, sadly a rare thing on KZbin. Just one thing, at time 10:30, you say in the low economic growth period, value outperforms growth. You said it the right way around many times, just letting you know as it might confuse others (unless I misheard or misunderstood it myself!)

[@rafaelf6994]

Hi again Ramin. I follow Yardeni research PE ratios and I am impressed by the historical low valuations of small cap stocks. What about a video about the historical performance os small caps??? Certainly should be in your bucket list for videos :D Have a nice weekend and thanks again for your amazing videos.

[@glassdomedesign]

I agree growth stocks coming out of a recession will be on fire, the challenge is at what stage to buy as whilst I agree, I still think we have an earnings recession to come I.e. we are in a technical recession, however this will deepen when the earnings are downgraded for so many companies, this is just starting with earnings season. So I think we have more drops ahead, perhaps 3 more months before I fill my boots with buying, but I do have FOMO, so I may dollar cost average in sooner

[@Ganok]

Great video! Thank you so much for your insights :)

[@Pensioncraft]

Glad you enjoyed it @Ganok

[@davidgray3321]

I thoroughly enjoyed this however and am always delighted to see a new one in my in box, thank you.

[@Pensioncraft]

Glad you enjoyed it @David Gray

[@Skovidesign]

Such a great video with eloquent explanation.

[@Pensioncraft]

Thank you kindly @Adam Skovran

[@jespersahnerpedersen]

Awesome analysis! in his book "The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New" (2005), Jeremy Siegel does an exhaustive analysis of value vs. growth and also analyzes sectors, demography, etc. over longer time periods. Specifically, Siegel analyzes "the growth trap" and concludes that "growth is not return". A key question one might ask with analyses like these looking at very long timespans trying to avoid traps is how to instead spot and benefit from bubbles and behavior in the market making even greater returns.

[@IncomeBoost42]

It’s all in the definition indeed! For some it’s innovation but to me, Growth is the concept of huge scaling potential for the business and that potential not being reflected in the current share price. The issue with Farma & French’s definition is that, while the distinction is clear and hence testable, people don’t really use this criteria for growth investments - as you showed with the funds mentioned in the video. Then again, academia vs reality when it comes to economics and finance is quite well know. *insert Charlie Munger quote here*

[@Paulie44]

It would be interesting to see the equivalent UK ETFs of those shown in the graphs. What about the @Paul Merriman Ultimate Buy and Hold Portfolio?

[@eurabio]

Good video, thanks. Greetings from Mexico

[@Pensioncraft]

Thanks for watching @eurabio

[@rafaelf6994]

Great insights and reliable info as always! Thank you again Ramin

[@Pensioncraft]

Glad you enjoyed it @Rafael F

[@joy-of-chemotaxis]

Another excellent video.

[@Pensioncraft]

I appreciate that @craig Hordlow

[@anindadatta164]

Excellent video, I truly miss interacting with Ramin

[@Pensioncraft]

Thanks @Aninda Datta. We can interact here!

[@dgw7748]

I enjoy my Saturday PensionCraft weekly video catch up. Playback speed at 1.75 works best to breeze through the commentary and insights.

[@Pensioncraft]

Interesting @D GW I actually slow down my recording 1.75x for KZbin so you are watching me at the correct speed 8-) Thanks, Ramin.

[@the1big1matt]

Exceptional content

[@Pensioncraft]

Thanks @mar5566

[@vinay4886]

I wonder if there’s more to growth stocks than this. For eg, I guess ‘growth’ stocks will be moved out of the index when they’re more stable after maybe 10-15 years when they channel profits back into maybe share buybacks and dividends- at this point, they’re taken out of the index and an investor may not see the return on investment in the whole index. But if you hold clean shares in individual growth companies, you will reap the rewards at this point. Please tell me if my reasoning is flawed.. PS- great videos on your channel 👍

[@slimjimjimslim5923]

I gotta ask, how confident are we with these growth stock metrics from big companies? They had this irrational exuberance for 20 years now and I just wonder if they ever consider our economy might take a deep dive.

[@firsargentum5920]

Great video with very clear analysis /explanations - thanks Ramin! Do you share any details of your own core portfolio anywhere?

[@Pensioncraft]

Hi @Firs Argentum I'm pleased you liked the video. I do have a members video about it here www.pensioncraft.com/patreon-post/how-i-invest-my-money/

[@firsargentum5920]

@@Pensioncraft Thanks - will check it out 👍

[@TrevorHelt]

Great video

[@Pensioncraft]

Glad you enjoyed it @Trevor Helt

[@alexdavis1541]

Basically then, I seem to have a portfolio for all weathers - except the current one

[@infour44]

Many years ago I bought GBG, with an eye to future growth and earnings. Given its puzzling cliff dive of late, and this is an online security company, these really are times for judiciously doing your homework.

[@mbg9650]

How would you weed out zombie cies?

[@jabberwockytdi8901]

Passive funds amplify the affect of growth/tech funds and direct retail buynig of the relevant companies? so are a postivie feedback loop on the way people are prepared to overpay for growth , which only helps encourage people to overpay even more. People who are cost averaging in are more likely to buy more of what is going up in price vs. what is dropping?

[@simonunion4657]

One day I hope you do a topic on safety of ETF`s as so many are available now and what protections are in place for investors I have been concerned of late that some firms may double count shares /stocks more than once to different ETF leading to mis selling scandal

[@danpavelescu3062]

Do you know why LSE does not provide real time data for ETFs?

[@miked8730]

Would have been nice to give a few good growth examples....

[@RangerMH1]

Hi Ramin. Whats your view on the USD? It has strenghten a lot the last year - is it time to hedge?

[@Pensioncraft]

Hi @Martin H thanks for supporting us! it's usually not worth hedging currency risk for equity but for bond funds it sometimes makes sense. That's assuming a long investment horizon of course 8-) e.g. see my video "Currency Risk - Should You Hedge?" kzbin.info/www/bejne/i3SWlH1-j7emnas Thanks, Ramin.

[@Awitsaduck]

I think the key graph was the one showing growth over performing in poor years. That's what we are increasingly facing these days, hence growth doing better in years since the 2008 recession

[@jmitterii2]

And there's probably more to drop and some to 0. As many of these growth stocks are on fumes running on equity thus taking massive debts.

[@drew9312]

Interesting content, thanks. It would improve the content if more of your video could address the video title as that aspect is only covered in approx a minute from a total of 13.41 mins. The content here mostly addressed the definition and retrospective data on growth stocks so these don’t match the title accurately.

[@wolfiestreet6899]

Demand a refund....

[@jasonburford2013]

You’ve probably been asked this a million times but can you recommend any investing books?

[@Pensioncraft]

Nice idea! We're thinking of doing this for a Many Happy Returns podcast episode Jason. Thanks, Ramin.

[@byron3328]

The Investment Answer

[@sunaxes]

Oh boy do I wish I had followed your advice…

[@robertallan4489]

In an environment of stagflation growth only zig-zags. If you want a fun, wild ride then go ahead into growth. But, I'd wait until this inflation cycle is finished and in the rear view mirror. You will know when that is when you see it. Trust your vision and instinct. In the mean time capital conservation is the primary emphasis you should be following.

[@theresasharp5095]

Anyone in the chat buying into $PSTI? Really caught my lately...

[@reggie2261]

Cathy growth stocks??

[@dimitrieriks1207]

My goal is to build a million-dollar portfolio, therefore I look forward to these stock videos to capitalize on any window of opportunity and make the most of it. Do you have any ideas for stocks that could triple and outperform in the short term?

[@Peter-MH]

Dollar strength is ruining emerging economies at the moment (look at Sri Lanka), so this might force the fed to slow rate rises, and that would be bullish for growth stocks

[@infour44]

Sri Lanka is sadly the victim of a number of issues, including corruption and debt.

[@Awitsaduck]

Question to Ramin. If you look at long term performance as a guide to selecting a passive investment strategy why are you in the world index given the very long outperformance of the US over Europe? Why not just USA (or US plus EM?)

[@sometimesuk]

Ramin did a video, I can't remember if it was on diversification or the global index, but he showed that in the past there have been long periods where the USA has actually underperformed, and as no one knows the future or if this will continue, global diversification is a good way to hedge your bets.

[@Pensioncraft]

MSCI USA outperformed MSCI World ex-USA in about half (55%) of the years from 1970 to 2021. Recently the outperformance has been much stronger (outperformed in 12 out of the 14 or 86% years from 2008-2021). Thanks, Ramin

[@wolfiestreet6899]

Isn't hindsight wonderful....

[@Awitsaduck]

@@sometimesuk I just take the view that Europe (inc uk) isn't really entrepreneurial or forward looking so am very underweight there. We will see if that's correct or not.

[@JEDAM75]

Isn't a bit strange to compare value and growth while going back so many years? I mean, I know you had "expensive" growth stocks back in the 40ties but many things have happened since then. First of all we now live in a digital era where microchips are in all devices and are somewhat controlling our lives. AI and the internet are other things that define our life today. In short, although there were growth stocks a hundred years ago they had a total other character than nowadays where tech has such a large impact on everything (and will have in the future). In conclusion, I don't deny that some stocks are certainly very expensive to normal metrics such an P/E but that we shouldn't go long back in history with comparisons since we simply can't compare the time being with the kind of growth back in time. Does it make sense?

[@wayneaubrey]

This time it's different

[@JEDAM75]

@@wayneaubrey, who knows.

[@davidgray3321]

I enjoyed this but if everyone expects the expected behaviour of stocks the stocks are unlikely to conform perfectly to the model, the second thing is that not every cycle is identical, politics, new technologies (I don’t just mean computers) etc. But the big issue people miss is demography. Economists have a partial education, economic historians are usually rather sharper, they realise about demography and many other issues rather than relying on curves and graphs. This means that health care will not perform as expected when the market strengthens over time, so over the next 5 years for instance there will be a lot more older people. And more so 10 years. Older people spend a lot more on health care. In addition the so called labour shortage in the US and U.K. is often caused by employers reluctant to employ the 55/60 + group. Get the message employers, there are not that many young people about!

[@missj.4760]

What about QQQ (Nasdaq)?

[@wolfiestreet6899]

What about it?

[@Alberta1stPodcast]

With another .75 hike coming why on earth would I buy a stock that has reported losses since it was created

[@manuvns]

Where is the next generation growth coming from? Uber or DoorDash?

[@presley492]

Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals

[@wolfiestreet6899]

OK.....

[@jefflindley8355]

IMHO we haven’t seen the bottom yet. But yes, growth will be good at some point. But not right now.

[@ludwigwladimirdorner3691]

Extraordinary investing video! Sub from me. Greetings from Germany

[@Pensioncraft]

Awesome, thank you and welcome aboard @Ludwig Wladimir Dorner

[@patbateman2088]

US growth is where you get the mega success stories: Apple itself is almost as big as the FTSE 100

[@djpuplex]

Greedy when other are fearful. I'd say yes now's is the best time.

[@borna430]

Well when almost a bankrupt company like Gamestop rallied 15% the other day, I'll say fear is not in the market yet. way more to go on the downside, I think

[@wolfiestreet6899]

Yeah, I don't use hackneyed cliché platitudes to make investment decisions....

[@discover7000]

Buy buy, system start the collapse buy , great idea

[@Fresty515]

This is why growth at a reasonable price is my favorite way of investing.

[@bentp4891]

I dont think weve seen the crash yet

[@masoncnc]

So all-in on TSLA ?????

[@thomasgaudette7367]

Seems Tesla is a value-growth stock.

[@masoncnc]

@@thomasgaudette7367 yes, depends who you ask. Some people see no value at current price, some do see value. Business and revenue are huge growth opportunity.

[@andyf10]

Time to buy growth? Umm not now. I really don't see we are properly into recession yet, so I think I will save my cash and wait. I see no significant upside chance yet, and plenty of downside. We have likely not hit peak inflation or rates yet.

[@andyf10]

@@TheBooban Indeed, and that's the problem with too much focus on charts rather than the real world. It doesn't matter what happened last time, or the last ten times, inflation is rising, rates are rising, another huge property crash is coming. And central banks have run out of ammunition.

[@rolfjohansen5376]

Where is the dog?

[@Pensioncraft]

Hi Rolf, Teddy is currently monitoring the garden for the threat of squirrels... He thinks that's his job. Thanks, Ramin.

[@junzhang2087]

I buy blend index. Not to speculate.

[@ryanmilliken5950]

The distinction between growth and value makes absolutely no sense at all.

[@arigutman]

It PAYS to be PAYtient... that is all I will say...

[@m4ckm4n59]

'Expensiveness ' Come now, Ramin.. You can do better than that. Next, you'll be saying humbleness lol. Always great content btw :)

[@helixvonsmelix]

Unfortunately his output is now strongly slanted toward USA. He is forgetting how he got to where he is.

[@Pensioncraft]

Hi @Helix Von Smelix markets are strongly slanted toward the USA. Their economy is the most important in the world and that's what drives markets for UK investors too. You'll find that I've always talked about the US more than other economies and markets and that's why. Thanks, Ramin.

[@simony2801]

Growth was driven by money printing by the fed, unless those days return and they start printing again I don’t see why growth would be a winner. Value seems to be the way to go.

[@wolfiestreet6899]

Because growth can create new innovative products and services that compete for market share and even dominate it. That's why.

[@simony2801]

@@wolfiestreet6899 that's wonderful. But it still pro Ted money that will drive it. No low interest rates caused by printing, no growth stocks.

[@wolfiestreet6899]

@@simony2801 False. You're over-generalising.

[@bapluda]

"Don't overpay for growth". Sorry pal you're a bit late, you should have told me that back in December. Now everyone and their dog know we are in a bubble, and I have lost 25% of my capital.

[@wolfiestreet6899]

That's your problem.

[@Pensioncraft]

Hi @bapluda take a look at my video from February 2021 "ARK Invest: Will Cathie Wood Sink ARK?" kzbin.info/www/bejne/goSanYmXjJ2grLs Thanks, Ramin.