3 Beaten-Down Growth Stocks to Buy in a Fed-Induced Bear Market
You may not like what I'm about to say, but it's nothing short of the truth: Bear markets are a normal and inevitable part of the investing cycle.
Last month, the technology-focused Nasdaq Composite briefly dipped into bear market territory with a peak decline of 22% from its all-time November closing high. While there are a number of plausible reasons behind the Nasdaq Composite's big decline, the Federal Reserve's monetary policy might just be the biggest culprit.
To be fair, no one ever said overseeing the monetary policy of the largest economy in the world by gross domestic product is easy. However, it's become readily apparent, in hindsight, the Fed left its foot on the accelerator for far too long. The combination of historically low lending rates and quantitative easing measures (i.e., long-term Treasury bond-buying and/or purchases of mortgage-backed securities) has helped push the prevailing inflation rate to a 40-year high. While some inflation is good for the economy, too much can stamp out growth in its entirety and send the U.S. economy into a recession.
Source Fool.com
