Quality Wins Over the Long Run
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
The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.