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Deciphering The Reflation Hype For Long-Term Growth Investors



  • Expectations of a strong economic recovery have led to fears of inflation. Higher inflation inevitably leads to higher interest rates, which dent growth companies' valuations.
  • Generally, a reflation trade entails rotation from growth stocks to value (defensive and cyclical) stocks. However, timing is critical if one intends to make money from such a trade.
  • After the violent sell-off in high-growth stocks, the reflation hype has taken over the investment media. As value stocks climb higher, analysts appear eager to recommend overpriced value stocks.
  • Assets are priced approximately based on what reality will look like 12 months in the future. This is key to understanding where to allocate capital today.
  • The sell-off in high-growth tech stocks and rapid run-up in value stocks is an excellent opportunity for investors to sell their "overpriced" value stocks and switch to "reasonably-priced" growth stocks.
  • This idea was discussed in more depth with members of my private investing community, Beating the Market. Learn More »

Hand turns dice and changes the word inflation to reflation.
Photo by Fokusiert/iStock via Getty Images

Co-produced with Ahan Vashi, Lead Research Associate at Beating The Market & L.A. Stevens Investments, LLC


The reflation trade is probably the most discussed investing strategy in the market these days. Most long-term

Beating the Market: The Time Is Now

There has never been a more important time in stock market history to buy individual stocks at the heart of secular growth trends. Mature market performers/underperformers and index funds simply will not cut it, as we face a decade during which there is absolutely no guarantee the overall markets will rise. 

This is why the time is now to discover high-quality businesses with aggressive, visionary management, operating at the heart of secular growth trends. 

And these are the stocks that my team and I hunt, discuss, and share with our subscribers!

This article was written by

Louis Stevens profile picture
A community achieving financial freedom through visionary investing
I buy businesses I like, then hold them with a long term time horizon.

Some credentials of mine: Former U.S. Army Officer, Political Science Florida Atlantic, MBA University of Florida, inventor of the L.A. Stevens Valuation Model.

Analyst’s Disclosure: I am/we are long ZM, ROKU, SQ, TDOC, HIMS, HIMSW, TWLO, AAPL, PTON. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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