Happy Memorial Day!  | | Luke Lango | I hope you’re enjoying the day with family and friends, doing what you love, while also honoring and remembering the military personnel who protect our freedom every single day, and allow us to enjoy life, liberty, and the pursuit of happiness. On this holiday, I’d like to recap what happened last week in the markets — and tell you why it’s so significant. Make no mistake. We are at a critical inflection point in the stock market. The value trade is dead. The growth trade is back. Last week, value-heavy sectors like consumer staples, energy, and utilities underperformed, with all three sectors posting negative returns. Meanwhile, growth-heavy sectors like communications services, consumer discretionary, and information technology outperformed, with all three sectors posting positive weekly returns in excess of 1%. There’s more to the story than just this delta in performance — because during the week, we got a red hot PCE reading which showed that inflation in April was running wild. Typically, that should mean value sector outperformance. It didn’t. It equated to continued growth stock outperformance.
That’s big. It means the market is convinced that inflation is, indeed, transitory. Why? Because the PCE data from last week is backward facing. Those are April numbers. And back in April, the economy was red-hot. The high-frequency data was consistently coming in ahead of expectations. But economic momentum slowed in May, and that’s when you started to see economic data miss after economic data miss. Basically, then, the PCE numbers released today are old news – and that’s why the market is shrugging them off. The market is convinced inflation is transitory, and that when the May numbers are released, they’ll show subdued inflation trends. That’s a big deal, because if inflation does prove transitory, economic growth will become more concentrated and yields will fall flat, leading to sustained outperformance in growth stocks. In other words, the time to buy the dip in growth stocks is now. That’s where we come in. In our exclusive, venture-capital-style research service Innovation Investor, we’ve created a portfolio of the highest-quality growth stocks to buy today for huge near- and long-term returns. On this special holiday, we’re granting you access to this portfolio. Click here to find out more. Sincerely, 
Luke Lango
Editor, Hypergrowth Investing On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video. By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke's entire lineup of innovative, bleeding-edge stocks, become a subscriber of Innovation Investor today. | 
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