Investors need to see a growth story for the price of the stock to keep rising.
Now, what we saw last week was that some growth stories had become overwrought. The price outpaced the growth story.
This happens in some large cities. Here in New Zealand, Auckland seems to have peaked. People are moving to smaller centres, and those centres are seeing the new growth story prices. Centres like Gisborne and New Plymouth.
A savvy investor looks to see not where the growth story is right now, but where it will be tomorrow. As you know, we’ve avoided some of the hottest growth stories. This is because we felt, at the time we were getting Lifetime Wealth going, they were too rich. And dangerous.
Now they’re correcting.
Tesla [NASDAQ:TSLA] with a P/E that seems ridiculous is now starting to shed growth. It is down 34% this past week.
Other tech and high growth companies are also down, including Apple [NASDAQ:AAPL] and Amazon [NASDAQ:AMZN].
As a result, we’re seeing other hidden opportunities emerging. Hidden opportunities that the mainstream media isn’t talking about…
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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.