- News of two vaccines being approved by the end of the month has sent value stocks soaring. JPMorgan predicts a rotation out of tech and into the most pandemic affected companies.
- This could create attractive opportunities to potentially buy the world's highest-quality, hyper-growth tech stocks at reasonable or even attractive valuations.
- EBIX is an above-average quality company, which is expected to grow 10% CAGR over time. It's suffering from profit deterioration that makes me hesitant to recommend it even at 8X earnings.
- Adobe, in contrast, is an 11/11 quality Super SWAN, and most analysts expect it to grow 17.4% CAGR over time. It's 22% overvalued, but well worth watch listing for a future correction or bear market.
- There is a 90% probability that Adobe will fall 30% over the next five years. I will be setting limits at a 5% margin of safety to ensure I profit from future market overreactions on one of the greatest tech companies on earth.
For further details see:
Just One Of These Popular Tech Stocks Is Worth Owning