Explanation of how to invest in growth stocks in 2022 — DotBig Review

Explanation of how to invest in growth stocks in 2022 — DotBig Review

Why buy them during the 2022 inflation

Inflation impacts businesses in two ways — it changes the prices of stocks and has an influence on the company’s financial performance. During such periods, shares might be often devalued, due to the increase in interest rates and a higher discount rate on future earnings. Nonetheless, growing companies should have enough capacity to be able to increase their revenue from a long-term perspective.

The criteria to choose the best growth stocks

We now know why buying these securities is a good idea. However, how can you identify whether the company is growing or not? We have 3 clear criteria that characterize businesses with growth stocks:

  1. Among the chosen businesses, define the companies that possess some solid advantages.
  2. Finally, cross out from your list companies that access a small number of trended markets.
  • Shopify. The coronavirus pandemic contributed to the growth of the e-commerce industry. Shopify is one of the best competitors in this area. Its stock is likely to grow in the future.
  • Netflix. The industry of online streaming grew during the lockdown. Netflix, as one of the best-developing streaming services, managed to increase its sales by 20%.

Conclusion

To sum it up, DotBig analysts consider that investing in growth stocks during inflation is a good long-term strategy. These shares represent fast-developing brands that will grow and bring returns in the future.

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DotBig Forex broker Reviews

DotBig Forex broker Reviews

The official online Forex account broker DotBig is a platform for online trading.