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I’m looking to add a growth stock to my self-invested personal pension (SIPP). This marks a change in strategy for me.
In recent years, I’ve focused on value shares, especially income-paying FTSE 100 financials like Legal & General Group. But I need a break from being a contrarian. Today, I want to piggyback on some momentum. Pick a red-hot growth share and, with luck, hope it climbs even higher.
Naturally, both strategies carry risks. Value stocks can turn out to be traps, while high-flying growth shares can come crashing down. I’m especially wary of buying after a stock has already surged, which is exactly the case with a FTSE 250 company that’s rocketed 20% in the last week.
This isn’t a flash in the pan though. Its shares are up more than 50% over 12 months and over 115% in five years.
Defence demand is surging
The stock in question is Chemring Group (LSE:…
