Switching gears, I’ve been writing in my publications (Cabot Market Letter and Cabot Top Ten Weekly) about many stocks-especially the popular leaders like Netflix, Baidu, F5 Networks, etc.-being “late-stage.” And, as in the example above, I usually get a few emails pertaining to that comment. “Why would you say XYZ stock is late-stage if its story is so good and its earnings growth (even its earnings estimates) is so strong?” The answer is relatively simple-history tells us that, no matter how good the story or earnings, growth stocks tend to have a shelf life. Usually their greatest performance comes...
