What can you do about this? Despite the temptation to invest heavily in high P/E growth stocks to take advantage of this bull run, practice good risk management, look to reduce the high-risk element of your portfolio. Also, if you are holding currently holding shares that fit this description, pay close attention to trading updates. Consider placing tight stop loses orders on your holding on the eve of the update to minimise loses.
Note: we appreciate that there are many other complex factors effecting each of the equities mentioned and their trading updates. Therefore, we don’t believe this trend will be relevant to every high P/E share and it only gives a small part of the picture but we believe it is noteworthy and can contribute to making an informed decision.