A Benchmark for Spry Growth at Modest Risk
Following an upward trudge during the spring and summer, the market lurched lower in the autumn. As a finale, the bourse sustained a jarring crash in December: a rare event for this time of year.
When the stock market flounders, high-growth stocks tend to thrash around more than their plodding peers. Not surprisingly, the MintKit Growth Index (MGX) fared worse than the stock market as a whole.
We may reckon the initial value of the Index upon its launch as unity (1); that is, 100 percentage points. In that case, the newfound level of MGX at the onset of 2019 comes out to 88.1746 points.
Since the Index fell by some 11.8% last year, it fared worse than the SPX which lost 6.2% over the same stretch. That much was to be expected given the heightened sensitivity of high-growth stocks to the movements of the stock market at large.
Looking downstream, the prospects for 2019 are not much better than last year's. In particular, the market is slated to soar and dive a couple of times during the year.
In that case, it seems prudent to favor stable growth rather than zippy gains over the year to come. For this reason, the revised roster for MGX takes a slightly conservative approach by seeking sturdy growth with ample stability rather than sparkling pep with lofty potential.
NOTE: The report is a slide presentation under the title of “MintKit Growth Index – Update”. The file is available in PDF form at SlideShare.
