Daily Market Update

I receive a “Daily Market Update” each morning via email through TD Ameritrade. Here is the opening statement from today:

“What the market has been doing this week is repricing where it thinks earnings should be in light of the hit to global economic growth that is expected from the coronavirus.”

The stalwarts understand the following comments, but for anyone that hasn’t quite grasped a core thesis of this board please allow me to highlight it once again - the stocks discussed here aren’t as exposed to the normal sags and surges of global economic growth. Businesses need the products our companies are selling regardless of the state of the economy. In good times and bad, companies still want to analyze data that improves their corporate strategy (AYX, DDOG, MDB). In good times and bad, companies still want to know their servers are protected from external threats (OKTA, CRWD) And in good times and bad, the general population is still watching tv and being exposed to advertisements (TTD, ROKU).

Speaking personally, while the general market is down almost 10% YTD my portfolio is UP 10%. I suspect many others on this board find themselves in the same situation.



Many indexers and people who don’t dare to take risk think the only they are investor and growth investors are “speculators”. They are jealous of the performance we get and hope the next bear market will wipe out our gains and get rid of us.

What those indexers don’t get is for high quality growth stocks, they don’t lose the previous gains in bear market. If a stock went up 50% and the market dropped 10%. The growth stock dropped 10% and it’s still up 40%.

The fact is my highly diversified growth portfolio(160 equal weight growth stocks) has out performed SP500 by 15% per year over the past 5 years. And this year so far, it out performed SP500 by 12% already. From my experiences, a group of high quality growth stocks rise more in bull market and drop less in bear market than the market index. I am sure those with concentrated growth portfolio will get a much higher return.

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