⭐⭐ Growth Stocks: Why They’re Getting Hammered By Inflation

Inflation tends to have both a direct and an indirect impact on stocks. Value stocks and growth stocks perform differently as consumer prices rise.

Value stocks trade at a lower value than their fundamentals
and growth stocks are expected to grow at a rate above average market growth. While growth stocks fall, value stocks gain as prices of commodities and services rise. Value stocks tend to do better in times of
higher inflation.

In short, value stocks generally get positively impacted amid rising prices in the short term compared to growth stocks.

You’re definitely in the RIGHT place if you’re looking to understand how to create an investment portfolio or a “bullet proof plan” in order to protect you and your family, generate an income stream in retirement, and ensure that your money outlives you. We can help you maximize your estate value for your beneficiaries and minimize how much your estate pays to the government.

Rob Tetrault is a multi award-winning Portfolio Manager and head of the Tetrault Wealth Advisory Group at CG Wealth Management. After graduating from the University of Toronto Law School, Rob initially
worked as an insurance litigation specialist at MLT Aikins in Winnipeg.

He then completed a Finance MBA and was a member of the Dean’s list at the Asper School of Business, before starting his Wealth Management Practice in 2010.

We highly recommend you become a member of our YouTube family by subscribing to our channel. You can suggest or ask me anything. If you have any ideas, please share them with me in the comments below. We will definitely upload new videos on recent and topical events in the stock market.

📣 Please tell us, what do you think of this video?

===================================================

⌚ SCHEDULE:

⌚ New Videos Every Week ⌚
👉 Don’t forget to share your opinion in the comments below.
Thank you for supporting the “ Rob Tetrault ” YouTube channel.

===================================================

📲CONNECT WITH US ON SOCIAL MEDIA:

TikTok ➡️
Instagram ➡️
Facebook ➡️
LinkedIn ➡️
Twitter ➡️
Pinterest ➡️

===================================================

📞 For Your FREE Consultation with Rob, simply fill out the form and directly book your strategy session in his calendar here:

🤝Watch Our Webinar Presentations:

👉 Register to our FREE retirement planning Masterclass –

👉 Register to our FREE Alternative Real Estate Investing Masterclass –

===================================================

📺 Watch my previous videos 📺

🎬 Eat The Rich: The GameStop Saga (2022) Netflix Documentary Review:

🎬 6 Things I Wish I Knew Before Investing.

🎬 Investing 100K:

🎬 Investing Basics: Bonds

🎬 RRSP investment options:

🎬 RRSP vs. RRIF:

🎬 Top 5 Reasons To Have A Holding Company.

🎬 What Is A Non Registered Account?

🎬 LIVE: Stock Market Q&A

🎬 What Is An NDA?

🎬 Should You Incorporate Your Investments?

🎬 Dividend Increase In Canadian Banks:

🎬 Tips To Build Good Credit:

🎬 Cryptocurrency Investing Options:

🎬 What Is Monetary And Fiscal Policy?

===================================================
❣ SPONSORED ❣
No, this video was not sponsored.
===================================================

📧 For Business Inquiries 📧
Mail: rtetrault@cgf.com
Phone: 204-259-2859

📚 For more information on Rob & The Tetrault Wealth Advisory Group, click here:
===================================================

⚠️ “DISCLAIMER” ⚠️

Rob Tetrault makes content available as a service to its customers and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. If any owners would like me to remove the video I have no problem with that, just send me a letter: rtetrault@cgf.com

#growthstocks #growthstock #inflation #inflationexplained #inflationasset #stagflation #investmentstrategy #stockmarketnews #economy #investingbasics #investing #stockmarket #stocktrading #stocktradingstrategies #stockstrader…(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Growth Stocks: Why They’re Getting Hammered By Inflation

As inflation continues to rise, growth stocks are bearing the brunt of the impact. These stocks, which are known for their high growth potential, have seen a significant decline in value as investors grow increasingly concerned about the effect inflation will have on their earnings.

Growth stocks are typically found in industries that are expected to experience a rapid increase in revenue and earnings. These include sectors like technology, healthcare, and consumer discretionary. These companies often reinvest their profits into expanding their business and research and development, leading to increased innovation and future growth.

However, when inflation comes into play, the situation for growth stocks becomes challenging. Inflation refers to the sustained increase in the general price level of goods and services over time, eroding the purchasing power of money. This not only impacts consumers but also affects companies in various ways.

One direct impact of inflation is the rise in input costs for businesses. Companies often face increased costs for raw materials, labor, and transportation, among other expenses. For growth companies heavily invested in research and development, these rising costs can significantly eat into their profits and hinder their ability to reinvest for future expansion.

Moreover, growing inflation causes interest rates to rise, which has its own negative implications for growth stocks. Investors tend to gravitate towards lower-risk investments like bonds when interest rates increase, as they become more attractive in terms of relative returns. This shift in investor sentiment away from growth stocks in favor of safer options can lead to a decline in their demand, consequently reducing their prices.

Another factor impacting growth stocks during inflationary times is the potential decrease in consumer spending. When inflation rises, the purchasing power of consumers’ income diminishes, leading them to cut back on discretionary spending. Companies that rely on consumer demand, particularly in sectors such as retail and leisure, are likely to see a drop in sales and revenue.

Furthermore, inflation concerns can also lead to central banks implementing more hawkish monetary policies. To curb inflation, central banks may increase interest rates or reduce monetary stimulus. While these policies aim to stabilize the economy, they can create headwinds for growth stocks, as borrowing becomes more expensive, slowing down business expansion plans.

So, what does all of this mean for growth stock investors? First and foremost, it highlights the importance of considering the broader economic context when investing. Keeping a close eye on inflation rates and understanding its implications can help investors make more informed decisions.

Furthermore, during times of inflation, it may be wise to diversify one’s investment portfolio to include a mix of growth and value stocks. Value stocks are known for their stability and consistent dividends, which can help offset the potential volatility of growth stocks during inflationary periods.

Lastly, investors should pay attention to individual company fundamentals and profitability. While growth stocks as a whole may face challenges during inflationary periods, individual companies can fare differently depending on their specific circumstances. Analyzing the company’s ability to maintain profit margins, control costs, and adapt to changing market conditions can provide valuable insights for investment decisions.

In conclusion, growth stocks are currently facing a difficult landscape due to the impact of inflation. As prices rise, the increased input costs, decreased demand, and shifting investor sentiment create significant headwinds for these high-growth companies. However, with careful analysis, diversification, and consideration of company fundamentals, investors can navigate these challenges and make informed investment choices in this ever-changing market environment.