Growth stocks offer a once-in-a-lifetime opportunity for generational wealth

It is a very difficult year in 2022 for at least those who want to achieve wealth by increasing their portfolio, with the share price of growth stocks being brutally punished.

Growth is king

However, around the world a pattern is emerging, and it is in central bank policy and inflation.

In Canada, inflation fell more sharply than analysts had expected. The UK is seeing faster inflation than expected, and the same can be said about the US.

Whisper quietly, but promising signs that we are moving to a new environment, away from the considered safe havens of cash ISAs and interest-bearing savings accounts. An environment where growth stocks are seen again taking their place on the throne as the king-incumbent.

Pain is a friend of growth

While growth stocks come in all shapes and sizes, by mid-2021 I think many stocks and speculative sectors have become too expensive and require dramatic cuts.

So, as I sat at my desk, I wondered what events could happen that would justify a halt in the progress of these growth stocks.

This happened in the form of supply chain shocks and wars on European soil that caused interest rates to snowball.

So often, when the consensus perspective believes that something is bad (or good) and pain (or joy) is felt in the form of falling (or rising) prices, the opposite is true.

This is because the market moves in anticipation of upcoming events and pain is a necessary component of healing, as any good doctor will tell you.

Be greedy when others are afraid, and vice versa

At the end of 2022, when a dark and gloomy cloud covers the world’s media and policy makers (forming a collective consensus), the valuations in some of these growth stocks have reached absurd lows and I think it’s time to pivot.

Of course, inflation started to fall earlier and faster than the consensus expected. Consequently, the company is rich Tesla who suffered a huge drop from the height of all-time since rising from the ashes.

On the shopping list

Now don’t get me wrong, I personally wouldn’t be buying Tesla stock right now. But now there are several companies with attractive valuations for my portfolio.

For example, one growth stock I’m looking at now in the sector I’ve been monitoring for a bargain Eco Animal Heath Group.

Like many biotech stocks, the share price has suffered as it is now unprofitable and is trading near its 15-year low – down 70% from its 2021 high.

That being said, I like the business approach and the growth potential of the product and pipeline. Eco focuses on the prevention and treatment of infectious diseases in cattle, poultry, sheep, pigs, horses and dogs.

This is an area that I believe will increase in importance, with infectious diseases on the rise and attention being placed on food safety, in a warm climate.

Risk for reward

Investing in growth stocks can be risky at the best of times. But for my portfolio, the time to buy has come.