Growth stocks are popular because, you guessed it; they grow and become more valuable. Investors ignore their high price to earnings ratios (P/E ratio) and just keep buying. But how about using earnings and other factors as a guide? The question is, should you use earnings or growth as a guide when picking investments?
Should You Use Earnings or Growth as a Guide When Picking Investments: Overpriced growth stocks
The Toronto Globe and Mail has an interesting article about this subject. They point out a long term problem with growth stocks.
There is plenty and unequivocal evidence from academic research in Canada and […]