After a month of violent rotation away from quality growth and into cyclical boom/bust businesses, long-term investors are reasserting control over the market. Investors are focusing on businesses that are positioned to lead tomorrow’s economy and are executing growth today, and well-positioned for above-average growth into the future. If this trend continues, our investors are well-positioned over the coming months.
In this week’s market review, our investment team will review how stock prices over the short term can be noisy, swinging up or down, but over the long term, wealth is created and sustained by investing in companies that are generating above-average growth that is persistent and accompanied by simple and easy to understand business models with healthy balance sheets.
The key takeaways from this week’s stock market review:
- April is seasonally positive for stocks
- Growth companies are well-positioned to reassert stock market leadership – good for LPAM Opportunity
- Volatility is returning to pre-pandemic levels – good for risk appetite
- The “reopen” trade is dangerously overbought – avoid this area
Robert Reaburn: Executive Vice President and Head of Wealth Management at LifePro Asset Management.