Quantum Wealth Summary

 

  • Growth stocks have underperformed this year compared to value stocks.
  • Geopolitical anxiety. Supply chain disruption. Inflationary pressure. All these perceptions of negativity have weighed down heavily on the tech sector.
  • But could growth stocks be set to rebound and rise again, if the conditions are right?
  • We take a closer look at one Kiwi tech company with speculative potential.

 

 

Are you a religious person?

Do you believe that the human experience is prearranged, preordained, fated?

Or…do you believe that destiny is like dough? Continuously shaped and moulded as we move along?

Well, here’s how the great religions see it:

  • The Abrahamic faiths — Judaism, Islam, Christianity — believe that the passage of time is linear. It begins with the creation of the world. It is defined by human frailties and moral questions. Then it ends with a final reckoning that promises judgment, salvation, and paradise. So, ultimately, time moves in a straight line.
  • Meanwhile, the Dharmic faiths — Buddhism, Hinduism, Sikhism — believe that the passage of time is non-linear. Yes, there are still human struggles to contend with: greed, jealousy, fear. But the grand finale is not fixed and signposted. Instead, there’s rebirth. Reincarnation. The journey starts all over again. So, ultimately, time moves like a circular wheel.

Of course, depending on what your cultural background is, you might already have a strong opinion about which belief system you prefer.

However, if you’re a long-time investor, here’s what you will notice about the stock market — it doesn’t move in a straight line. Instead, it moves in terms of cycles.

Just check out the two graphics below. They offer two different interpretations of what the ebb and flow of the market looks like:

 

Source: Forbes

 

Source: FXStreet

 

Simple but profound, isn’t it?

  • People tend to buy when they are greedy.
  • People tend to sell when they are fearful.
  • The most significant waves seem to happen when emotions are at their most feverish and volatile.

So, where exactly are we in the market cycle right now? How is the tech sector faring? And is it time for investors to make a ‘counter-cyclical’ move to buy into growth stocks again?

We’ll try to answer these questions — as well as take a closer look at a Kiwi tech company with speculative potential. For the past two years, it’s delivered a return of over 900%.

While past performance is no guarantee of the future, we want to find out if there’s still more juice left in the tank here…