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Strategies & Market Trends : The New Economy and its Winners

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To: 16yearcycle who wrote (2014)10/9/2000 6:19:11 PM
From: Wizard  Read Replies (1) of 57684
 
>>The truth is that business has been very good, just not beating expectations. I think business will continue to grow at a solid clip but won't accelerate for a year.

Acceleration
Beat Expectations

Some of my companies are accelerating revenue growth, some are slowing down off big numbers but all will beat consensus expectations - and all were going down last week. The common theme is that the stocks are expensive and volatile, which means you take it on the chin once or twice a year.

Deceleration is a funny thing. If you are growing 500+%, you still might grow 400% and that is deceleration. I can cite lots of stocks with decelerating growth over the years that have been great stock market performers.

Decelerating growth is just a reason sell-side analysts are giving for declining stock prices - don't take them literally.

I view accelerating growth as bullish but it runs out of gas once the stock gets bid up to reflect the acclerating growth. Likewise, decelerating growth often causes corrections in stock prices but it doesn't mean the stock is a bad investment. Once the stock price reflects deceleration, the stock then resumes its advance - all else equal.
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