2 Risky Growth Stocks That Could Pay Off in the Second Half of 2022
It's no secret the stock market is having a rough year. The technology sector has been crushed especially hard, with the Nasdaq-100 index nursing a loss of 27% in 2022, placing it firmly in a bear market. High inflation is one of the culprits driving the decline because it's pushing interest rates up at a brisk pace, forcing investors to reconsider their growth expectations for high-flying tech companies.
But what if inflation has peaked? The Consumer Price Index (CPI) is at a 40-year high, but it's a lagging indicator, and the prices of several key commodities have collapsed over the last few months, which could take time to feed through to the CPI data. Wheat, for example, heavily impacts food prices and is down 31% since March.
This might lead to interest rate expectations cooling off, which could reignite investors' appetite for high-growth stocks in the second half of 2022. Here are two heavily beaten-down opportunities that could deliver big rewards for investors who have room for some risk in their portfolios.
Source Fool.com