Kalkine's CEO Kunal Sawhney in an exclusive conversation with Adrian Franklin- Driving growth investing amidst the virus-induced recessionary scenario.
Growth investing has defeated value investing in the US stock market’s revival from March 2020 crash. Russell 1000 Growth Index has returned over 70% since the March dip, while the Russell 1000 Value Index has returned 53%. The growing importance of technology companies amidst the COVID-19 era seems to have brought this fundamental change in the equity market trends.
How to be smart enough to screen growth stocks?
Although the standards can help investors identify some of the biggest potential winners, there is a high possibility that one does not find a stock that meets all these requirements. Investors can therefore pick stocks meeting the majority of these benchmarks to build a growth investment portfolio.
* Remember, growth stocks usually perform better in a low-interest-rate environment which is favorable for corporate earnings. And the current ultra-low interest rate scenario validates this aspect.
* To gain throughout different economic cycles, investors can build a well-diversified portfolio with a mix of growth, value, and dividend stocks. It can be the best bet for investors seeking potentially high returns amidst recessionary scenarios.