What is happening in GROWTH https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> and TECH https://abs.twimg.com/emoji/v2/... draggable="false" alt="💻" title="Computer" aria-label="Emoji: Computer"> stocks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Nasdaq gained 9.6% in August and peaked at 12.000+ on the 2nd of Sept

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> It then quickly lost over 6% in 2 days

A short week-end thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
If you’ve been here for some time, you have already experienced drawdowns

https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Remember September 2018 when the $QQQ went from 185+ to 145 and would not break out until end of December

https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Remember September 2019 when high flying growth names lost 15 - 20% in 2 days for no reason
What happened lately?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🦠" title="Microbe" aria-label="Emoji: Microbe"> Investors hate uncertainty above anything else and COVID halved the valuation of most (growth) stocks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔑" title="Schlüssel" aria-label="Emoji: Schlüssel"> Lockdowns were put in place and the economy shifted virtual
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Once the uncertainty around COVID faded, tech stocks took a central stage as they provided the tools we needed for this virtual world
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> With 0% interest rates and the massive stimulus from most governments, some asset prices have to inflate eventually

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">With most parts of the economy still in lockdown, that dry powder went directly into growth stocks as two factors came into play
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> First, lots of these little known stocks came on the radar of Big Finance - a very interesting account to follow here is @HedgeMind

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Second, these were the only stocks that were “investable” as demand for their product subsisted and even increased during lockdown
On valuations now

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein"> With small to negative income, what matters for growth stocks is the Price to Sales Ratio

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> A look at most tech stocks (large and small caps) reveals that their PS ratio has extended above it average bounds in the last months
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏢" title="Bürogebäude" aria-label="Emoji: Bürogebäude"> Large caps

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> $AMZN PS of 5.2 versus Avg. around 2.5 over last 5 years

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📱" title="Mobiltelefon" aria-label="Emoji: Mobiltelefon"> $AAPL PS of 2 versus Avg. around 1 over last 5 years

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💻" title="Computer" aria-label="Emoji: Computer"> $MSFT PS of 11 versus Avg. around 5 over last 5 years
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Small caps

https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚔️" title="Gekreuzte Schwerter" aria-label="Emoji: Gekreuzte Schwerter"> $OKTA PS of 35 versus Avg. around 25 over last YEAR

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten"> $TEAM PS of 26 versus Avg. around 17 over last YEAR

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🖥" title="Desktop-Computer" aria-label="Emoji: Desktop-Computer"> $NOW PS of 23 versus Avg. around 15 over last YEAR
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten"> The bottom line https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎢" title="Achterbahn" aria-label="Emoji: Achterbahn"> Whether you want it or not, large caps lead the indices and affect how smaller stocks trade

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧗‍♀️" title="Kletternde Frau" aria-label="Emoji: Kletternde Frau"> PS ratio are currently in the higher range and it might be harder to expand further unless any very positive news pops up
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏋️" title="Person lifting weights" aria-label="Emoji: Person lifting weights"> These stocks might thus need some more time and the pullback might last - which is rather a good news as it prevents any bubble from forming

https://abs.twimg.com/emoji/v2/... draggable="false" alt="⛳️" title="Golffahne" aria-label="Emoji: Golffahne"> Trying to time to market has proven to difficult for me, I just stay invested and hold to my winners - The price of admission!
Hope you liked this thread!

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> For more content, follow us on Twitter

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Want to get under hyped companies delivered straight to your inbox? Subscribe now! https://getbenchmark.substack.com"> https://getbenchmark.substack.com 
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Disclaimer - This is not investment advice in any form and investors are encouraged to conduct their own research before investing.

Sources

✑ https://www.macrotrends.net/ 

✑">https://www.macrotrends.net/">... https://www.equityzen.com"> https://www.equityzen.com 
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