Today may be a day known for ghouls and goblins, but it’s been a downright frightening month for the stock market as a whole. So far this month, the broad-based S&P 500 and tech-heavy Nasdaq Composite have dipped into correction territory (defined as a drop of 10% or more from a recent high). This has included a handful of all-time top-10 single-session point losses.
More importantly, we could be witnessing the beginning of a shift from growth stock investing to value stocks. After all, we’re nearing the 10th year of this economic expansion, and no matter what the Federal Reserve or U.S. government does, nothing can prevent an eventual economic contraction or recession. As interest rates rise and slowly close the door on “cheap” money, the proposition for value stocks continues to grow.
Meanwhile, some previously popular growth stocks may soon find themselves looking rather ghoulish. In the spirit of Halloween, consider the following three growth stocks more trick than treat.
Marijuana stock Tilray (NASDAQ:TLRY), which only became a public company in July, has been an easy stock for growth investors to love. After all, Canada becoming the first industrialized country to legalize recreational cannabis on Oct. 17 paves the path for $5 billion or more in added annual sales once the industry is fully up to speed.
However, Tilray’s low tradable float, combined with the company still being well within the lockup period, created a unique situation that allowed…
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