Stock market investors are rewarding companies that are able to show high growth, while fleeing from companies that are not able to meet ambitious growth projections. This preference for growth stock results from lower earnings and narrower profit margins. Stocks are hitting records and valuations are at 15-year highs. But how much longer can companies like Amazon, Apple, Alphabet, and Facebook continue to sustain high levels of growth? This is exactly the situation that preceded the last two recessions. As the Wall Street Journal puts it, “the rally in growth stocks will probably end badly.” (For complete article click here.)
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