What-if is growth stock that hardly has any dividend ? This becomes tricky in market drawdown. In growth stock, PE can move from low to high gear and back. What this mean is money created out of thin air or vaporize with sentiment as money is not in the pocket literally. Strong companies will not escape punishment even with almost perfect score as people will still focus on the imperfect and blow it off with broad market. People who continues to average down in a down trend market will be suffering for a long time mentally. There is no base support. It can be a bottomless pit as valuation is just a paper exercise till something change the course.
The market is well known to be 6 months ahead. So if rates impact till year end means Early June is the time we re-evaluate our thoughts again. So much on Growth Stocks. Needless to say is not the same logic as dividend investing. Our brain needs to switch a bit on this and timing maybe critical even when we cannot do well on it. As usual exception always applies just in case someone like to shoot my thought.
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