THE past two years have seen investors — amid a market flush with liquidity — piling into growth stocks in the rubber glove, semiconductor and healthcare industries following exponential demand growth due to the Covid-19 pandemic. And stocks that were once the darlings of investors have seen sharp corrections in recent months, with analysts predicting that investors could make the switch and start buying defensive stocks. As these growth stocks underwent a rollercoaster ride, stocks in defensive sectors have held steady. While it is a good time to look at growth stocks with strong fundamentals, Wong says investors need to be cautious. “Just because commodity prices are high, it doesn’t mean that investors should go into growth stocks in the oil-and-gas or plantation sectors.
