Last week's dramatic sell-off has flowed through into this week with the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) continuing to drop today – the index is now down over 1% in the past five trading sessions.
As usual highly priced growth stocks have come under heavy pressure and borne the brunt of the selling. This commonly happens during heightened volatility with investors become nervous about potentially stretched valuations and whether high forecast growth rates will be achieved.
Two high quality stocks which have suffered large falls over the past week are REA Group Limited (ASX: REA) and Magellan Financial Group Ltd (ASX: MFG) – they are down 5.2% and 5.4% respectively…
Given neither of these two stocks have announced any negative news it appears that the market jitters may have provided investors with a cheaper entry price into REA and Magellan than existed a week ago.
In fact both stocks would appear to have had some positive news to report recently. In REA's case, last week the leading online real estate portal announced it had acquired a strategic 17.22% shareholding in iProperty Group Ltd (ASX: IPP) for $106.3 million. This would appear a sensible acquisition as it provides the group with exposure to the growing Asian region.
Meanwhile Magellan recently released its monthly update of 'funds under management' (FUM). The update continued the positive trend with FUM increasing from $23.5 billion to $24.8 billion – a very pleasing result for shareholders.
